West Marine, Inc. has reached a settlement with the United States Securities and Exchange Commission (SEC) which resolves the SECs investigation of the company in connection with the facts and circumstances that gave rise to the companys 2007 restatement of its financial results for fiscal years 2002 through 2005 and for the first three quarters of fiscal year 2006.
The restatement resulted from a company-initiated review in 2007, during which the company identified and corrected its accounting for indirect inventory cost capitalization, as more fully described in West Marines annual report on Form 10-K for the fiscal year ended Dec. 30, 2006.
Geoff Eisenberg, CEO of West Marine, commented, “The settlement constrains our ability to comment on the SECs allegations. I can say, however, that after nearly two years of cooperating with the SECs staff, we are very pleased to report that no fines, penalties or other monetary sanctions were assessed against the company. We also understand that the SEC is not proceeding against any of the companys past or current associates or directors.
“We all have an obligation to remain constantly vigilant in ensuring that our financial reporting systems and processes continually improve. I am confident that we now have first-rate accounting practices, financial team leadership, and internal controls.”
“We are extremely pleased to have this matter finally behind us as we continue to focus our efforts on doing an outstanding job in support of our customers, associates and shareholders.”
Under the settlement, without admitting or denying the allegations made in the SECs complaint, the company consented to a permanent injunction against any future violations of Sections 17(a)(2) and (3) of the Securities Act of 1933, as amended, and Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Securities Exchange Act of 1934, as amended.
Geoff Eisenberg, CEO of West Marine, commented, “The settlement constrains our ability to comment on the SECs allegations. I can say, however, that after nearly two years of cooperating with the SECs staff, we are very pleased to report that no fines, penalties or other monetary sanctions were assessed against the company. We also understand that the SEC is not proceeding against any of the companys past or current associates or directors.
“We all have an obligation to remain constantly vigilant in ensuring that our financial reporting systems and processes continually improve. I am confident that we now have first-rate accounting practices, financial team leadership, and internal controls.”
“We are extremely pleased to have this matter finally behind us as we continue to focus our efforts on doing an outstanding job in support of our customers, associates and shareholders.”
Under the settlement, without admitting or denying the allegations made in the SECs complaint, the company consented to a permanent injunction against any future violations of Sections 17(a)(2) and (3) of the Securities Act of 1933, as amended, and Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Securities Exchange Act of 1934, as amended.
