FACTBOX: Companies respond to insider trading scandal

NEW YORK | Mon Oct 19, 2009 7:57pm EDT

NEW YORK (Reuters) - The companies whose executives are alleged to have been involved in the biggest hedge-fund insider-trading case ever issued statements on Monday and provided updates on actions they have taken:

* International Business Machines Corp: Senior IBM executive Robert Moffat is accused of passing on information about his own company, Sun Microsystems Inc and Advanced Micro Devices.

"In view of a U.S. federal investigation into his personal activities, Mr. Moffat has been placed on temporarily leave of absence and is no longer serving as an officer of IBM," said company spokesman Edward Barbini. He declined to comment further including whether IBM was conducting any internal investigations.

* Intel Corp: Intel has not yet been contacted by federal officials about the charges against Intel Capital managing director Rajiv Goel, spokesman Chuck Molloy said. Molloy added that Goel is on administrative leave and Intel has launched internal investigations.

Meanwhile, Chief Executive Paul Otellini told Fox Business News on Monday: "He's a fairly low level guy. If this is true, he's out -- he's going to have to find a new place to make a living."

* Polycom Inc: Chief Executive Bob Hagerty sent employees an email: "Polycom has strict rules and policies against employees divulging confidential insider information and we completely support government action against anyone who breaks these rules. We will provide any and all assistance needed to the authorities to fully support this investigation."

* Google: The SEC complaint says an unnamed tipster received information from investor relations firm Market Street Partners about a shortfall in Google's earnings and passed it on to Rajaratnam. Representatives from Google and Market Street declined to comment.

* McKinsey & Co: Anil Kumar, a California-based director at the management consulting firm, has been placed on indefinite leave after being accused of providing information about AMD to Rajaratnam. McKinsey declined to comment except to say it was "distressed" at Kumar's arrest. Kumar has asked for leave of absence from the board of the Indian School of Business.

* Moody's Investor Service: An associate analyst at the credit rating agency is accused of being paid $10,000 in 2007 for passing on a tip that Hilton was about to be bought by The Blackstone Group. Moody's spokesman Michael Adler said the agency has a strict policy against divulging confidential information and will assist the government in its investigation.

* Akamai Technologies Inc: An unidentified Akamai employee provided inside information about the company's earnings, according to the complaint. A spokesman did not return multiple calls for comment.

(Compiled by Anupreeta Das, Ian Sherr and Ritsuko Ando; Editing by Gary Hill)

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