VMware accused of failing to disclose “backlog management practices” | Cooley…

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Last week, the SEC filed a settlement lawsuit against VMware, a provider of cloud storage software and services, alleging that it misled shareholders by including material information about its “managed pipeline” of orders in quarterly and annual Exchange Act reports did not disclose earnings calls and earnings announcements during fiscal 2019 and 2020. According to the press release, the company used its “backlog management practices” to “push revenue into future quarters by delaying product shipments to customers and comparing those compared to its guidance.” company’s declining performance. Interestingly, the charges in the SEC order weren’t about comic bookkeeping, or even the enforcement’s popular riot police, failure to maintain and comply with adequate disclosure controls and procedures. As VMware noted in a statement, “the SEC’s findings do not include any finding that the company failed to comply with generally accepted accounting principles.” …



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