DOW JONES NEWSWIRES
Terex Corp. (TEX) said the Securities and Exchange Commission
has approved a settlement reached in May to end the agency's probe
of the construction equipment maker, which must pay an $8 million
penalty.
The deal ends Terex's liability but not that of Terex
employees.
The SEC investigation focused on the restatement of some Terex
financial statements from 2000 to 2004 and the accounting for
certain transactions between Terex and United Rentals Inc. (URI) in
2000 and 2001, and one transaction in 2001 between United Rentals
and one of Terex's subsidiaries. It wasn't part of Terex at the
time.
Without admitting or denying the SEC's charges, Terex was
required to pay an $8 million civil penalty, already reserved for
in the second quarter. The settlement also forbids Terex from any
more violations of federal or SEC regulations regarding anti-fraud,
reporting, internal controls or books and records.
Last month, Terex swung to a loss and cut its 2009 sales
forecast, saying it would turn to cost cuts to counteract the hits
it's taking from the recession.
Terex shares were recently up 3% at $15.96.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com
