Posted by Cydney S. Posner, Cooley LLP, on Thursday, February 2, 2017
Editor's Note:
Cydney S. Posner is special counsel at Cooley LLP. This post is based on a Cooley publication.
The Corp Fin staff have been dropping hints for quite a while about potential enforcement actions in connection with abuses of non-GAAP financial measures (see, e.g., this PubCo post), and an interesting one has now materialized. In an Order released [January 18, 2017], the SEC announced settled charges against MDC Partners, Inc., a publicly traded marketing firm, for failure to comply with the rules related to non-GAAP financial measures. In addition, the company was charged with failure to disclose millions in perks awarded to its former CEO.