Lucent China faces SEC legal action

The US Securities and Exchange Commission (SEC) has told Lucent Technologies that it might face legal action stemming from a corruption investigation focused on the telecom equipment maker's Chinese operations, the Financial Times reported. The US-based company fired four China executives in April 2004 for alleged "internal control deficiencies" as part of an investigation that found potential violations of the Foreign Corrupt Practices Act, which bars the payment of bribes by US companies operating overseas. Lucent confirmed in a filing with the SEC that it has been told to expect a "Wells" notice advising the company that the SEC's staff investigators have recommended "enforcement action" against the company. Lucent said that the notice related to the earlier corruption investigation, which it had disclosed.