X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
BOSTON – A federal jury ruled against the U.S. Securities and Exchange Commission in a civil fraud case against former software company CEO Alan C. Goldsworthy. After a four-week trial and one day of deliberations, the jury ruled that Goldsworthy did not engage in two schemes to fraudulently inflate revenue in the 2001 and 2002 financial statements of Applix Inc., a Westborough, Mass.-based business intelligence software company acquired by Cognos Inc. last year. SEC v. Goldsworthy, 1:06-cv-10012 (D. Mass.) “We are pleased that the jury was able to see through the thicket of unfounded SEC charges,” said Nixon Peabody partner Deborah L. Thaxter and lead attorney on the Goldsworthy legal team. “From the start, we were convinced these charges should have never been filed,” said Thaxter, who is in the firm’s Boston office. In a statement about the verdict, Nixon noted that the SEC highlighted this case as the “first instance of a new policy” to settle with companies that reported securities violations and to bring cases against “the individual wrongdoers.” David Bergers, director of the SEC’s Boston regional office, said the case does not reflect a new policy. “The commission has always pursued enforcement actions against both individuals and companies it believes have violated the securities laws,” Bergers said. Although it lost its case against Goldsworthy, the SEC settled with another former Applix executive in the case and got a favorable jury verdict for another one. In January, the SEC settled similar charges against Applix’s former director of world-wide operations, Mark E. Sullivan, with a $25,000 penalty and at least a three-year suspension from practicing before the SEC as an accountant. The jury also ruled that former CFO Walter Hilger was involved in falsification of Applix’s books and records and that he negligently engaged in a transaction that caused fraud or deceit to buyers of Applix securities.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Advance® Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]

 
 

ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.