The Securities and Exchange Commission (SEC) reported that Skechers U.S.A., Inc. agreed to settle charges for failing to disclose payments for the benefit of its executives and immediate family members. Skechers agreed to pay a $1.25 million civil penalty to settle the SEC’s charges without admitting guilt.
According to the SEC’s order, from 2019 through 2022, Skechers did not comply with related person transaction disclosure requirements when it failed to disclose its employment of two relatives of its executives and did not disclose a consulting relationship involving a person who shared a household with one of its executives. Furthermore, according to the SEC’s order, for multiple years, Skechers failed to disclose that two of its executives owed more than $120,000 to the company for personal expenses that had been paid for by Skechers but were not reimbursed to the company by the executives.
“Disclosure of related person transactions provides important information for investors to evaluate the overall relationship between a company and its officers and directors,” said Scott A. Thompson, associate director of Enforcement in the SEC’s Philadelphia Regional Office. “Today’s action is a reminder that companies should take appropriate measures to ensure proper disclosure of such transactions.”
The SEC’s order found that Skechers violated reporting and proxy solicitation provisions of the Securities Exchange Act of 1934. Without admitting or denying the SEC’s findings, Skechers agreed to a cease-and-desist order and to pay the civil monetary penalty.
The SEC said its investigation was conducted by Oreste P. McClung and Brian R. Higgins and was supervised by Brendan P. McGlynn, Mr. Thompson, and Nicholas P. Grippo, all with the Philadelphia Regional Office.
Image courtesy Skechers
