EMI says that it hasn't heard from the Securities and Exchange Commission concerning <A HREF="http://www.billboard.com/bb/biz/newsroom/business_finance/article_display.jsp?vnu_content_id=1000484100">a
EMI says that it hasn't heard from the Securities and Exchange Commission concerning alleged claims by a former employee that the major label attempted to manipulate Nielsen SoundScan album-sales data.
A published report yesterday suggested that the SEC is looking into the matter, but has not opened a formal investigation.
"EMI has not heard from the SEC or any other authority concerning these false allegations," EMI said in a statement. "The false allegations relate to the chart position of records. They have nothing to do with EMI's sales and financial reporting. As we have said before, EMI does not engage in these alleged practices."
Nielsen SoundScan says that its results cannot be manipulated through serial scanning and other such practices. The company has multiple levels of safeguards designed to catch any attempts that might be made to skew sales results.
The allegations surfaced in a lawsuit between EMI and Avatar Records, an indie label previously distributed by EMI. EMI sued Avatar for breach of contract last April, claiming the indie owes them $1 million.
"This is another red herring attempt by Avatar to divert attention from a lawsuit EMI filed to recover more than a million dollars Avatar owes EMI," EMI said.