Cutter & Buck Inc. announced Tuesday that, based on communications with the staff of the Securities and Exchange Commission, it expects to reach an agreement which would resolve the Commission’s previously announced investigation of the Company. The agreement would provide for Cutter & Buck to comply with the financial reporting, maintenance of books and records and internal control provisions of the federal securities laws, and would not require the Company to pay any fines or penalties. The anticipated agreement would remain subject to final approval by the Commission.
Last August, Cutter & Buck identified certain revenue recognition issues that it publicly disclosed and brought to the SEC’s attention. “We self-reported this matter to the SEC in 2002, as soon as we discovered the problem,” said Fran Conley, the Company’s Chief Executive Officer. “We had a responsibility to our shareholders and believed it was in the best interests of the Company to fully cooperate with the SEC in its investigation. We are convinced that the Company’s prompt action and cooperation with the SEC has been a significant factor in this matter. With yesterday’s announcement regarding a settlement of the shareholder lawsuits and our prospects for concluding the SEC investigation, we are close to getting all of these historical issues behind us.”
