VMware Announces Settlement of Previously Disclosed Investigation by the Securities and Exchange Commission

Rhea-AI Summary

VMware has reached a settlement with the U.S. Securities and Exchange Commission to resolve an investigation regarding backlog disclosures from fiscal years 2019 and 2020. The company will pay a civil penalty of $8 million without admitting or denying any findings. Notably, the SEC found no violations of generally accepted accounting principles. Additionally, the SEC does not plan any enforcement action against current or former VMware management. VMware emphasizes its commitment to integrity in public communications.

Positive

• Settlement of $8 million avoids further legal complications.
• No findings of failure to comply with generally accepted accounting principles.
• No enforcement action against current or former officers.

Negative

• The $8 million penalty represents a financial cost.

PALO ALTO, Calif.--(BUSINESS WIRE)-- VMware, Inc. (NYSE: VMW) (the “Company”) today announced that it has reached a settlement with the U.S. Securities and Exchange Commission (the “SEC”) to resolve a previously disclosed investigation related to the Company’s backlog disclosures in public filings for its 2019 and 2020 fiscal years, which ran from February 3, 2018 through January 31, 2020.

Under the terms of the settlement, the Company has agreed to pay a civil monetary penalty of $8 million without admitting or denying the SEC’s findings, which relate to the Company's disclosures. The SEC’s findings do not include any findings that the Company failed to comply with generally accepted accounting principles. The SEC Staff has confirmed that it does not intend to recommend enforcement action against any current or former VMware officers or other member of management in connection with the investigation, and this settlement concludes the matter.

VMware believes this settlement is the right course of action for the Company and continues to be committed to operating at the highest level of integrity, including with respect to its public filings and communications with investors.

About VMware

VMware is a leading provider of multi-cloud services for all apps, enabling digital innovation with enterprise control. As a trusted foundation to accelerate innovation, VMware software gives businesses the flexibility and choice they need to build the future. Headquartered in Palo Alto, California, VMware is committed to building a better future through the company’s 2030 Agenda. For more information, please visit www.vmware.com/company.

VMware is a registered trademark of VMware, Inc. in the United States, and other jurisdictions.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220912005968/en/

Doreen Ruyak

VMware Global Communications

1.202.744.9767

druyak@vmware.com

Source: VMware, Inc.

FAQ

What was the settlement amount VMware agreed to pay to the SEC?

VMware agreed to pay a civil monetary penalty of $8 million.

What years were involved in VMware's SEC investigation?

The SEC investigation involved backlog disclosures from VMware's fiscal years 2019 and 2020.

Did VMware admit to any wrongdoing in the SEC settlement?

No, VMware did not admit or deny the SEC's findings in the settlement.

Will any VMware executives face enforcement action from the SEC?

The SEC has confirmed it does not intend to recommend enforcement action against any current or former VMware officers.