Document management systems designer and manufacturer Xerox listed on the New York Stock Exchange in July 1961. The company issued three profit warnings over four quarters in the year leading up to 2Q00. In June 2000, Xerox announced that the SEC had launched an investigation into accounting issues related to the its Mexican business where it claimed to be having issues with customer receivables. In April 2002, the SEC charged Xerox with fraud which had overstated revenues between FY97 and FY01 by 3% and profit by around 40% (although these amounts were subsequently revised up). The company had been pulling forward revenues on contracts, running down provisions and factoring receivables to hide the lack of cash flow.

Last updated August 2022.

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