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Intertek said that it had voluntarily disclosed problems at the Richardson plant to the agency in January 1998, and the spokeswoman said the company had "absolutely" no idea at that time that federal authorities suspected any wrongdoing or problems with the company's tests.
Regulators suggested that had Ernst & Young disclosed problems with its audit, the sale of the division could have been hindered.
HealthSouth has also hired the law firm of Fulbright & Jaworski to review recent events at the company and claims made in a shareholder lawsuit that HealthSouth should have disclosed problems with its billing practices earlier.
Kmart said last week that it would delay releasing its 2001 annual report because the accounting inquiry it had begun in January, after an anonymous tip, had disclosed problems involving vendor allowances, among other areas.
They simply learned that it was acceptable to have problems, since their peers had disclosed problems of their own.
Boston Scientific, which disclosed problems at the unit in November 1998, neither admitted nor denied the S.E.C. findings.
Second Chance disclosed problems with the vest in September, after officers wearing the vests in California and Pennsylvania were killed.
It seems to have become a sure thing that before any trading session is over, some bank will have disclosed problems related to speculative debt.
The class-action suit also complained that several insiders at 3Com sold stock before the company disclosed problems at U.S. Robotics.
Mr. Kraushaar cited a federal filing in which the company disclosed problems with a $500 million loan, apparently to Sunbeam, involving First Union and Morgan Stanley Dean Witter.
The previously disclosed problems at Octagon caused losses of 6 cents a share for the third quarter and are expected to result in a loss of 15 cents to 20 cents a share for the year.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com