SEC Penalizes Late Filings In Broad Enforcement Sweep Using Data Analytics

WHAT HAPPENED

Last week, the SEC announced settled charges against 23 companies and individuals for failing to timely file Section 16 reports on Forms 3, 4 or 5.

Additionally, two public companies were charged for contributing to late filings by their officers and directors and failing to disclose the deficiencies as required.

Without admitting or denying the charges, the parties agreed to cease and desist orders and to pay penalties ranging from $10,000 to $200,000 for individuals, $40,000 to $750,000 for entities, and $200,000 each in the case of the two public companies.

TAKEAWAYS

Over the past year, the SEC has shown increased focus on delinquent filings, bringing actions against institutional money managers for 13F reporting failures and corporate insiders for Section 16 reporting failures.