Sport-Haley, Inc announced that the U.S. District Court in Colorado has entered a Final Judgment, pursuant to a settlement reached with the Securities and Exchange Commission to resolve the pending claims in the civil action brought by the SEC against Sport-Haley and its former controller. The Commission approved the settlement on December 8, 2005. Judge Nottingham last week signed the Final Judgment as to Sport-Haley, Inc.. The settlement did not call for Sport-Haley to pay any fine, civil penalty or disgorgement.
In 2004, the SEC found that during the golf apparel company's '1998 2000 fiscal years, its auditor caused Sport-Haley to file false and misleading quarterly and annual reports concerning the company's income, work-in-progress inventory and previously discontinued headwear operations. The Commission found that the auditor knew that certain financial accounting and reporting practices were improper and assisted in carrying out those practices.
The SEC also found that the auditor issued audit reports containing unqualified opinions on the company's financial statements even though they knew or were reckless in not knowing the company's financial statements were materially misstated.
