Enforcement Archive

Aug 18, 2021
Pearson settles $1mn SEC action over cyber-attack disclosures
London-based Pearson has agreed to pay $1mn to settle SEC charges that it misled investors about a 2018 cyber-attack involving the theft of student records and had inadequate disclosure controls and procedures. Pearson provides educational publishing and other services to schools and universities. According to the SEC’s filing in the administrative proceeding, the company made material misstateme...
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Jun 17, 2021
First American settles cyber-security reporting action
First American Financial Corporation has settled SEC allegations of disclosure controls and procedures violations related to a cyber-security vulnerability that exposed sensitive customer information. According to an SEC filing, the enforcement involves First American’s EaglePro application for sharing document images related to title and escrow transactions. The SEC says the Santa Ana, Californi...
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May 12, 2021
Under Armour settles disclosure enforcement
Under Armour has settled SEC allegations regarding aspects of disclosures relating to its revenue. Specifically, the SEC in its administrative proceeding alleges that Under Armour failed to disclose material information about its revenue management practices, which meant statements it made were misleading. The Baltimore, Maryland-based sportswear company has agreed to pay $9 mn to settle the civil ...
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Mar 12, 2021
SEC’s Crenshaw urges rethink on setting corporate fines
SEC member Caroline Crenshaw has called for the commission to refocus how it assesses penalties imposed on companies for violations, with more attention being paid to the misconduct involved and issuer co-operation with the agency.  Speaking at a Council of Institutional Investors conference earlier this week, Crenshaw said the commission has in the past placed too much emphasis on factors such as whether the company’s shareholders benefited from the misconduct o...
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Mar 09, 2021
SEC accuses AT&T of Reg FD violations
The SEC has accused AT&T of violating Regulation FD and has charged three of its investor relations (IR) executives with aiding and abetting those alleged violations by selectively disclosing material non-public information to research analysts – accusations the company rejects. ‘Regulation FD levels the playing field by requiring that issuers disclosing material information do so broadly to the investing public, not just to select analysts,’ Richard Best,...
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