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Spiegel, Inc. Charged with Fraud for Failing to Disclose Auditor’s “Going Concern” and Related Reporting Violations
SEC v. Spiegel, Inc.
- 2006
Defendant allegedly withheld the fact that in or about the beginning of 2002, its independent auditor had notified that it may not be able to continue operating as a “going concern.” It chose instead to not make its required filings to avoid disclosing the “going concern” notice and to avoid the negative “disruptions” that disclosure would cause. Its securities registration was accordingly revoked, and the company soon filed for bankruptcy.
