West Marine settles with SEC
By IBI Magazine
West Marine announced that the Securities and Exchange Commission (SEC) has resolved its investigation into a multi-year restatement of its financial results. The SEC has not assessed any penalties, fines or other monetary sanctions against West Marine. The SEC began its investigation after West Marine restated its financial results for fiscal years 2002 through 2005, and the first three quarters of 2006. The restatement resulted from an internal review in which the company identified and corrected its accounting for indirect cost capitalization. West Marine CEO Geoff Eisenberg said in a statement that the settlement "constrains" the company's ability to comment on the case. "I can say, however, that after nearly two years of cooperating with the SEC's staff, we are very pleased to report that no fines, penalties or other monetary sanctions were assessed against the company," he said. "We also understand that the SEC is not proceeding against any of the company's past or current Associates or Directors." Under the settlement, without admitting or denying the allegations made in the SEC's complaint, the company consented to a permanent injunction against any future violations of Sections 17(a)(2) and (3) of the Securities Act of 1933, as amended, and Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Securities Exchange Act of 1934, as amended.
(24 July 2009)
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