Subscribe to LexTalk to stay on top of today’s legal issue and trends.
Catapult Your Career |
Industry Insights & Trends |
Product Training & Tips
his article is part of the bi-weekly Corporate Counsel Report Newsletter, republished here courtesy of the Lexis Securities Mosaic editorial team.
Between 2007 and 2012, oil services company Weatherford International allegedly issued false financial statements that inflated its earnings by over $900 million. According to the SEC, Weatherford misled investors about its earnings per share, effective tax rate and other significant financial information. While the SEC is forcing Weatherford to pay a $140 million penalty to settle charges that it exaggerated earnings and understated taxes, the agency is not going to force the company to claw back excess incentive compensation that was paid to its CEO and CFO. SEC enforcement division director Andrew Ceresney, who in a blog today discussed the SEC's enforcement work in the area of auditing, called this a "major accounting fraud" and added that "Weatherford has paid a steep price for its misconduct." This case is the latest in an ongoing SEC crackdown on fraud involving financial reporting and disclosures by publicly traded companies. See Enforcement Actions section for more information on the SEC's charges.
A broad range of resources, including securities compliance, transactional disclosure & regulatory activity are available with Lexis® Securities Mosaic®. Register for a free trial >>
Written by Miriam Robin, a Current Awareness Editor at LexisNexis and a freelance writer for the New York Law Journal. Prior to that, she was a Manager of Marketing & Communications at iHeartMedia, a Senior Communications Writer at Paul Hastings LLP, a Communications Analyst at Sullivan & Cromwell LLP, and a Copywriter at Macy’s. Miriam received her J.D. from St. John’s Law School and her B.A. from Queens College.