WASHINGTON (AP) _ Eyewear maker Bausch & Lomb Inc. has settled federal regulators' allegations that it fraudulently overstated its 1993 earnings and has agreed to pay $42 million to shareholders who had sued the company.

In addition, the Securities and Exchange Commission said Monday that four former Bausch & Lomb officials settled the agency's allegations that they were responsible for the fraudulent reporting of sales of sunglasses and contact lenses.

In their settlements, the company and the four ex-officials neither admitted nor denied the SEC's allegations.

One of the officials _ John Logan, a former regional sales director of the company's contact lens division _ agreed to pay a civil fine of $10,000. The company and the three other former officials of the division _ president Harold O. Johnson; Ermin Ianacone, its controller and vice president of finance; and Kurt Matsumoto, its director of distributor sales _ agreed to an administrative order barring them from future violations of federal securities laws.

The market watchdog agency alleged that Logan gave certain distributors of the company's contact lenses the right to return them under a special marketing plan and that he knew, or should have known, that those returns would be wrongly reported as sales.

The SEC alleged that Bausch & Lomb, a company with international operations based in Rochester, N.Y., overstated its 1993 revenue by $42.1 million and its net income by at least $17.6 million, or 11 percent, in its reports filed with the agency in 1993 and 1994. The company corrected its financial statements last year.

The case shows that ``senior management ... has to be especially vigilant when (there's) pressure to make the numbers'' look better than they are, Thomas Newkirk, the SEC's associate director of enforcement, said in a telephone interview. ``We're going to hold the (company) responsible'' even if a fraud is committed by officials below the top levels, he said.

Bausch & Lomb disclosed that it had agreed to pay $42 million to settle the class-action lawsuit by shareholders, filed on grounds of the alleged overstatement of earnings. The detailed terms of the settlement still must be negotiated by the two sides and approved by the U.S. District Court for the Western District of New York.

In a statement, the company said it agreed to the settlement ``to eliminate the burden and expense of further litigation, and to put these issues conclusively behind it so it can concentrate on growing its business and providing increased value to its shareholders.''

Bausch & Lomb said its insurance company will pay a substantial portion of the $42 million settlement. The eyewear maker said it will take a special charge against its fourth-quarter earnings of some $13 million after taxes, or 24 cents a share, to cover the remainder.