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Carrier Access Settles with Ex-CFO

The company's chief financial officer resigned in November and took a position with a competing company shortly thereafter.
Stephen TaubJuly 18, 2005

Carrier Access Corp. announced that it has settled breach-of-contract charges against former chief financial officer Timothy R. Anderson, who resigned in November to take a similar position at a competitor. The settlement also dismisses his subsequent countersuit, according to a company press release.

Last November, Anderson resigned from the Boulder, Colorado-based company, which provides broadband communications equipment; in December he joined Madison, Alabama-based broadband access provider Verilink Corp. as vice president and chief financial officer.

Technology website RedNova.com reported that Carrier Access sued Anderson in April, claiming that he violated a no-compete agreement by taking a position with a competitor within three weeks of his November 16 resignation. According to RedNova.com, the company also asserted that the violation invalidated Anderson’s sale of $1.9 million in company stock. The Carrier Access announcement did not address this issue.

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Anderson’s countersuit alleged that the Carrier Access may have inappropriately reported revenue in 2004 for sales through another business, reported RedNova.com. According to the company’s press release, as part of the settlement, Anderson reaffirmed statements to the company’s external auditors and the chair of the company’s audit committee that he is unaware of any material errors in the company’s financial statements during the time he was employed by Carrier Access.

In May the company announced that it would delay the filing of its financials and that it would restate results for 2004 and parts of 2003, noting that a “significant” amount of revenues and costs have been recorded in “incorrect periods,” reported RedNova.com. The website added that a decision is pending on whether it will be delisted from Nasdaq.

Last month Carrier Access named Gary Gatchell executive vice president, chief financial officer, and treasurer. Gatchell took over for Nancy Pierce, who was acting CFO since November, and who has resumed her former responsibilities as corporate development officer and secretary.

Previously, Gatchell was the finance chief of Voyant Technologies Inc., a provider of enhanced voice and conferencing solutions; earlier he was CFO of Intertech Plastics and an audit manager at KPMG.