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At the end of last week, the SEC announced that it had filed settled charges against eight companies for failing to disclose in their Form 12b-25 filings (Form NT Notification of Late Filing) that their late filings of periodic reports were caused by an anticipated restatement or correction of prior financial reporting. The staff detected the violations through the use of data analytics in an initiative aimed at Form 12b-25 filings that were soon followed by announcements of financial restatements or corrections. According to Melissa Hodgman, the new (again) Acting Director of Enforcement (following the abrupt resignation of the prior Director), “[a]s today’s actions show, we will continue to use data analytics to uncover difficult to detect disclosure violations….Targeted initiatives like this allow us to efficiently address disclosure abuses that have the potential to undermine investor confidence in our markets
By Kyle Brasseur2021-04-30T19:27:00+01:00
The Securities and Exchange Commission (SEC) on Thursday announced settlements with eight companies for incomplete reporting related to “not timely” form disclosures.
Form NT (or Form 12b-25) is required when a company seeks additional time to meet its quarterly or annual financial reporting obligations. In filing Form NT, a company must explain why it needs the extra time, in addition to whether the delay is the result of anticipated changes in financial results.
In Thursday’s press release, the SEC said each of the eight companies announced restatements or corrections to financial reporting within two weeks of filing Forms NT that proved insufficient. The forms didn’t disclose the anticipated restatements or corrections as reasons for the late filings, nor did they indicate management at the firms anticipated a significant change in quarterly financials.