Enterasys Fraud Alleged by L.A. Pension Fund
From Associated Press
Several top executives of Enterasys Networks Inc. orchestrated phony deals and engaged in accounting trickery to inflate revenue, an expanded stockholders’ lawsuit charges.
Investors, led by the Los Angeles County Employees Retirement Assn., broadened their lawsuit this week to include a claim that several top Enterasys executives belonged to a “special teams unit” that met regularly to plan deceptive maneuvers. The suit said the information came from former employees whom it did not identify.
A lawyer for Enterasys denied the charges and said the computer networking firm would vigorously defend itself in the case.
Shares of Portsmouth, N.H.-based Enterasys fell 8 cents, or 5.7%, to $1.32 on the New York Stock Exchange.
