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ARTICLE · 12 MAY 2017

SEC Settles Enforcement Action Relating To Non-GAAP Measures

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On 18 January 2017, the SEC announced that New York-based MDC Partners had agreed to pay $1.5 million to settle charges that it failed to disclose executive compensation and violated...

United StatesFinance and Banking
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On 18 January 2017, the SEC announced that New York-based MDC Partners ("MDC") had agreed to pay $1.5 million to settle charges that it failed to disclose executive compensation and violated non-GAAP financial disclosure rules. Non-GAAP financial measures are financial measures that do not conform either to US generally accepted accounting principles ("GAAP") or international financial reporting standards, as applicable.

As discussed in previous issues of this memorandum, in May 2016, the SEC updated its C&DIs regarding the use of non-GAAP financial measures. Since then, the SEC has focused on compliance with non-GAAP disclosure rules, both in SEC comment letters, as well as in enforcement actions.

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