Symantec was acquired by the General Services Administration in 1993 and the United States has since intervened in the lawsuit. The United States alleges that Symantec submitted false claims to the GSA when it awarded contracts to the company. The Fortune 500 company is headquartered in Mountain View, California, and sells a range of computer security products. However, the government is not aware of the case. Therefore, this information is not publicly available.
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While Symantec is not known for releasing its financial results, a recent internal audit has brought the company’s shares to their lowest level in seventeen years. The investigation is being conducted in secret and the company has delayed its annual report until it concludes the probe. The U.S. headquarters will pay a special dividend of $8 billion and the company is now located in Tempe, Arizona. After the split, Symantec will split into two separate companies. The split was first announced on October 10, 2014, but only formally announced on February 17, 2015.
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The company’s board of directors recommended that Symantec cut expenses and increase revenues. Kleiner Perkins Caufield & Byers (KPCB), which was backing Symantec, also agreed to the deal. As a result, the company’s board and management worked out a salary reduction plan: the chairman and CEO will receive zero pay, all vice-presidents will take 50% cuts, and all other employees will receive a fifteen percent cut. Further, it was agreed that the office space would be reduced by twenty percent, which helped the company reduce costs and increase employee productivity.
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