SEC Brings $11,000 SOX Clawback Action
The SEC alleges that Marrone Bio Innovations, Corporation. misstated its revenue. The SEC lately introduced a settled enforcement action against its former CFO. The SEC alleges the CFO received bonuses throughout the 12-month periods following a filings that contains financial results that MBI was needed to restate. The settlement necessitates the former CFO to compensate MBI for as many as $11,789 pursuant to Section 304(a) from the Sarbanes-Oxley Act of 2002. The SEC didn’t allege the former CFO took part in the misconduct giving rise towards the restatement.
Section 304 of SOX necessitates the ceo or chief financial officer associated with a issuer needed to organize a cpa restatement because of material noncompliance using the securities laws and regulations because of misconduct to compensate the issuer for: (i) any bonus or incentive-based or equity-based compensation received with that person in the issuer throughout the 12-month periods following a false filings and (ii) any profits recognized in the purchase of securities from the issuer in that 12-month periods. Based on the SEC, Section 304 doesn’t need that the ceo or chief financial officer participate in misconduct to trigger the reimbursement requirement.
Based on the SEC the previous CFO violated SOX by not under your own accord tendering a cheque to MBI.
The settlement also orders the previous CFO to cease and desist from committing or causing any violations and then any future violations of Section 304 from the Sarbanes-Oxley Act.
The previous CFO didn’t admit or deny the details within the SEC order.