Synchronoss Technologies in $12.5 Million Settlement With SEC
June 07 2022 - 11:15AM
Dow Jones News
By Michael Dabaie
Synchronoss Technologies Inc. said it resolved an investigation
by the U.S. Securities and Exchange Commission regarding the
company's restatement of selected financial data from 2013 to
2016.
Cloud, messaging and digital products and platforms company
Synchronoss said that in 2018, it restated the transactions at
issue in the probe and in connection with the SEC settlement,
neither admitted nor denied the SEC's allegations.
Under the settlement, Synchronoss said it agreed to pay a civil
penalty of $12.5 million. The expense associated with this
settlement has previously been accrued in financial statements, the
company said.
Its shares were down 3.2% to $1.52 in morning trading.
The SEC said the allegations related to long-running accounting
improprieties that ran from 2013 to 2017.
In a July 2018 SEC filing, Synchronoss said it restated its
audited financial statements for the fiscal years ended Dec. 31,
2015 and 2016 and restated selected financial data for the fiscal
years ended 2013 and 2014 totaling about $190 million in
revenue.
According to the SEC, Synchronoss acknowledged that during this
period it had accounted for numerous transactions improperly and
thus filed with the commission materially misleading financial
statements along with having material weaknesses in its internal
controls over financial reporting.
"We are pleased to have entered into this settlement with the
SEC regarding this legacy matter and look forward to continuing to
place our focus on the company's strategic growth initiatives,"
Chief Executive Jeff Miller said. "This matter relates to
historical transactions that the company restated almost four years
ago, and Synchronoss believes that reaching this resolution now is
the right outcome for our shareholders, customers and key
stakeholders."
Write to Michael Dabaie at michael.dabaie@wsj.com
(END) Dow Jones Newswires
June 07, 2022 11:00 ET (15:00 GMT)
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