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Those transactions inflated earnings by $88 million, Mr. Brown said.
The company inflated earnings by 970 million euros in three years.
Inflated earnings at its American subsidiary, U.S. Foodservice, amounted to $880 million.
Prosecutors say the company inflated earnings by as much as $2.5 billion.
The company also inflated earnings by $500 million by improperly releasing unrelated reserves into income, the S.E.C. said.
That gimmick artificially inflated earnings late in the year, the suit says, allowing top executives to qualify for stock options.
Similar(31)
Some policymakers argued that options encouraged executives to inflate earnings.
"You would never borrow money to inflate earnings.
Managers intending to sell equity reduce investment, to inflate earnings and thus the stock price.
The Securities and Exchange Commission has accused HealthSouth and Mr. Scrushy of inflating earnings by $1.4 billion since 1999.
Derivatives, because they are so hard to value, make it easier for traders and chief executives to inflate earnings.
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