SEC may investigate Riverstone

Jim Hu
Jim Hu Staff Writer, CNET News.com
Jim Hu
covers home broadband services and the Net's portal giants.

Riverstone Networks said Friday that it has received a request from the Securities and Exchange Commission for information regarding its accounting practices. The SEC also told the telecommunications switch maker that it may open a formal investigation. No further details were disclosed.

The announcement comes after Riverstone said it would search for a new chief executive. Its current CEO, Romulus Pereira, was named chairman on Monday and will remain as CEO of the company until a replacement is hired.