ALAMEDA, Calif.—Cell phone and wireless equipment maker UTStarcom Inc. said Thursday it agreed to settle charges stemming from a Securities and Exchange Commission investigation into the company's option grant awards practices and sales contracts in China.
UTStarcom has agreed to settle the charges by agreeing to a permanent injunction against "any future violations of the reporting, books-and-records and internal control provisions of the federal securities laws."
The company said it did not admit or deny the allegations in the SEC complaint.
UTStar added it there were no monetary penalties assessed against it.
Hong Lu, the company's current chief executive and a director, settled with the SEC by paying a civil penalty of $100,000. He also did not admit or deny any allegations. The company said he consented to a permanent injunction on similar terms as the company.
Another investigation into possible violations of the Foreign Corrupt Practices Act is ongoing with the Department of Justice, the company said.
UTStarcom shares rose 16 cents, or 4.9 percent, to close at $3.41.
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