RSA Discloses Possible SEC Civil Injunction

RSA Security

RSA, based here, disclosed the possible litigation in an Aug. 14 10-Q filing.

SEC staff also said the company and some of its officers could submit a written statement explaining why no such proceeding should be initiated. "The company intends to submit such a statement," RSA said in a statement.

An RSA spokesman said the company is in the process of writing the statement but doesn't know yet when it will be released.

On Jan. 23, the SEC notified RSA that it was conducting an investigation of RSA's disclosure of a change in its method for estimating distributor revenue in the first quarter of 2001, and also trading in its common stock.

In April, RSA announced a restructuring, which included firing roughly 17 percent of its workforce worldwide. Last month, the company blamed continued weak IT spending for a second-quarter loss and named a new CFO.

Solution providers have said the company's reorganization has not reduced channel support, despite some personnel changes.