Avoid The SEC Penalty Box – Late Insider Reporting

On September 27, 2023, the Securities and Exchange Commission (SEC) announced civil penalties against several officers, directors, and major shareholders for failing to timely report and file disclosures relating to their holdings and transactions in company stock. In total, six individuals and five public companies were charged and paid civil penalties in connection with their violation of disclosure obligations. As a result of failing to file or filing late, the SEC estimated that investors were deprived of information regarding over $90 million in company-stock transactions. The SEC enforcement team used data analytics to determine who repeatedly neglected to file or reported filings late, some of whom were years behind—others, only weeks.