Xerox hit by new financial investigation

News by

24 May 2001

Xerox has hit the news again over financial irregularities, sending its shares falling by over 5% to 7.56 ($10.75) on Tuesday (22 May)

Xerox has hit the news again over financial irregularities, sending its shares falling by over 5% to 7.56 ($10.75) on Tuesday (22 May).

A report in The Wall Street Journal said the US Securities & Exchange Commission (SEC) was widening its investigation into the firm after allegations from a former employee that Xerox artificially boosted revenue and profit figures.

"The allegations come from one individual a disgruntled former employee," said Xerox director of corporate public relations Christa Carone. "Were confident that the company has not done anything wrong."

Citibank has been subpoenaed by the SEC for information about it buying the future rental income of copiers from Xeroxs Brazilian operation.

Former assistant treasurer James Bingham alleged that Xerox might have improperly booked 98m in revenue and 56m in pre-tax profit in its 1999 second and third quarter results.

"The transactions are legitimate and conform to generally accepted accounting principles," said Carone.

Story by Barney Cox

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