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Microsoft, SEC Reportedly Negotiating

Time: 13:48 EST/18:48 GMT | News Source: Associated Press | Posted By: Alex Harris

Microsoft Corp. reportedly is negotiating with the Securities and Exchange Commission (news - web sites) to settle allegations the software giant misrepresented its financial performance. Rather than imposing fines, the SEC is likely to bring civil charges that Microsoft, based in suburban Redmond, failed to keep accurate books and records, The Wall Street Journal reported Thursday, citing unidentified sources close to the talks. A common resolution in such cases is for a company to promise to follow SEC rules in the future. Agreement could be weeks away and the terms could change, the sources said.

SEC probes are conducted under tight confidentiality and the agency's officials rarely comment on them. SEC spokeswoman Christi Harlan would neither confirm nor deny the Journal report Thursday. The issue has been hanging for more than two years, and the talks may reflect a recent SEC attempt to crack down on "cookie jar" accounting practices that fail to provide an accurate picture of earnings and revenues.

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