The U.S. Securities and Exchange Commission filed suit on September 26, 2003 against Sport-Haley, Inc. its chairman and former CEO, Robert G. Tomlinson, and its former controller, Steve S. Auger.
The suit alleges that the defendants misrepresented inventories, period costs and losses on the sale of headwear equipment in annual and/or quarterly financial statements for the company's fiscal years 2000, 1999 and 1998.
The SEC's suit primarily relates to errors in SPORs previously issued financial statements that were reported when it voluntarily restated its financial statements for the specified years.
The defendants, who had not been served with the complaint as of September 30, 2003, intend to vigorously defend the allegations they say are without merit.
The company warned in a press release that a ruling in favor of the SEC could negatively impact the SPOR's financial position and the results of its operations.
