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It’s “Earnings Management” Season At The SEC

earningsmanagement

The timing of Foreign Corrupt Practices Act enforcement actions are sometimes difficult to predict.

However, with history as a guide the SEC is likely to announce several corporate FCPA enforcement actions over the next few weeks.

Why? Because the SEC’s fiscal year ends on September 30th.

In 2019, four SEC corporate enforcement actions were announced in September.

  • Barclays (Sept. 27th)
  • Westport Fuel (Sept. 27th)
  • Quad Graphics (Sept. 26th)
  • Technip (Sept. 19th)

In 2018, four SEC corporate enforcement actions were announced in September.

  • Stryker (Sept. 28th)
  • Petrobras (Sept. 27th)
  • United Technologies (Sept. 12)
  • Sanofi (Sept. 4th)

In 2017, two SEC corporate enforcement actions were announced in September.

  • Alere (Sept. 28th)
  • Telia (Sept. 21st)

In 2016, four SEC corporate enforcement actions were announced in September.

  • GlaxoSmithKline (Sept. 30th)
  • Och-Ziff (Sept. 29th)
  • AbInBev (Sept. 28th)
  • Nu Skin (Sept. 20th)

In 2015, two SEC corporate enforcement actions were announced in September.

  • Hyperdynamics (Sept. 29th)
  • Hitachi (Sept. 28th)

Measured against yearly SEC corporate FCPA enforcement action, over the past five years approximately 25% of SEC corporate FCPA enforcement actions occur in September with approximately 15% of those actions occurring during the last week of September.

SEC Commissioner Hester Peirce has called this September dynamic (which is observable not just in FCPA enforcement actions but other actions as well) as the SEC’s “own version of earnings management.” (See here).

Stay tuned to FCPA Professor for all enforcement action developments. This site may not be the first to report on an enforcement action (I actually read the enforcement action documents before posting and don’t just summarize DOJ/SEC press releases), but this site does contain the most comprehensive, timely analysis of all FCPA enforcement actions.

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