Pharmaceutical company Bristol-Myers Squibb is under investigation by the Securities and Exchange Commission (SEC) over allegations that the drug maker overstated its 2001 revenues by nearly $1 billion. According to SEC officials, Bristol-Myers aggressively offered wholesalers incentives last year to purchase drugs in an effort to meet earnings projections.

While the practice of offering incentives is common in the pharmaceutical industry, analysts say the drug company's resulting inflated revenues are not. As a result, Bristol-Myers officials say the company may be forced to cut nearly 40 cents a share off earnings for this year and into 2003. The investigation comes on the heels of corporate America's latest financial scandals--WorldCom and Enron.