Defendant Name: McAfee, Inc.

Defendant Type: Public Company
SIC Code: 7372
CUSIP: 57906410

Initial Case Details

Legal Case Name SEC v. McAfee Inc.
First Document Date 04-Jan-2006
Initial Filing Format Civil Proceeding
Case Number 06-cv-00009
Allegation Type Issuer Reporting and Disclosure
Federal District Court California, Northern District of California

Violations Alleged

Exchange Act
Sec 10(b) + Rule 10b-5
Rule 12b-20
Sec 13(a)
Rule 13a-1
Rule 13a-13
Sec 13(b)(2)(A)
Sec 13(b)(2)(B)
Securities Act
Sec 17(a) (Not specified)
Section 13(b) Exchange Act


First Resolution Date 09-Feb-2006
Headline Total Penalty and Disgorgement

See Related Documents

Related Documents:

complaint_06-cv-00009 04-Jan-2006 Complaint
SEC v. McAfee, Inc. (f/k/a Network Associates, Inc.)
In the Complaint, the SEC alleged that: "McAfee, Inc., formerly known as Network Associates, Inc. (hereinafter referred to as 'McAfee'), a publicly-traded manufacturer and supplier of computer programs and hardware based in Santa Clara, California, carried out a multimillion dollar financial fraud between 1998 to 2000. During the period, McAfee overstated its revenues by $622 million in order to meet revenue and earnings targets and understated its cumulative net losses by $353 million. McAfee stuffed its distribution channel and improperly recorded hundreds of millions of dollars of revenue on sales transactions with distributors in violation of the antifraud and other provisions of the federal securities laws. In a fraudulent scheme to oversell its products and immediately record the revenue from those transactions, McAfee secretly gave its distributors substantial cash payments, price discounts, rebates, and other concessions as inducements to continue buying, as well as to not return, McAfee products that the distributors had no reasonable expectation of selling to customers. McAfee also inflated its revenues in certain quarters during the relevant period by engaging in sham sales transactions that lacked economic substance and by improperly selling its accounts receivables in certain quarters, in order to perpetuate the misleading impression that McAfee had robust, non-discounted product sales."
court_doc4_06-cv-00009 09-Feb-2006 Court Docket Document
Final Judgment as to Defendant McAfee, Inc.
On February 9, 2006, Federal District Judge Phyllis J. Hamilton entered final judgment against McAfee, Inc. pursuant to the consent of McAfee, Inc.
2010-22 22-Feb-2010 Press Release--Civil Action
SEC Announces $67 Million Fair Fund Distribution to Harmed Investors in McAfee Financial Fraud Settlement
On February 22, 2010, the SEC announced the distribution of approximately $67 million to more than 16,000 investors in connection with McAfee, Inc. financial fraud settlements. The Fair Fund was created after McAfee (formerly Network Associates, Inc.), agreed to pay approximately $50 million in penalties and disgorgement to settle SEC charges in 2006 that it defrauded investors by overstating its revenues and earnings. Subsequently, the proceeds from three other settled SEC enforcement actions related to the McAfee financial fraud were added to the Fair Fund: Ingram Micro, Eric G. Borrmann, and Terry W. Davis. Settlements in these actions added more than $16 million to the Fair Fund.

Related Actions:

In the Matter of Ingram Micro Inc.