Synchronoss Technologies in $12.5 Million Settlement With SEC

By Michael Dabaie

Synchronoss Technologies Inc. said it resolved an investigation by the U.S. Securities and Exchange Commission regarding the company's restatement of selected financial data from 2013 to 2016.

Cloud, messaging and digital products and platforms company Synchronoss said that in 2018, it restated the transactions at issue in the probe and in connection with the SEC settlement, neither admitted nor denied the SEC's allegations.

Under the settlement, Synchronoss said it agreed to pay a civil penalty of $12.5 million. The expense associated with this settlement has previously been accrued in financial statements, the company said.

Its shares were down 3.2% to $1.52 in morning trading.

The SEC said the allegations related to long-running accounting improprieties that ran from 2013 to 2017.

In a July 2018 SEC filing, Synchronoss said it restated its audited financial statements for the fiscal years ended Dec. 31, 2015 and 2016 and restated selected financial data for the fiscal years ended 2013 and 2014 totaling about $190 million in revenue.

According to the SEC, Synchronoss acknowledged that during this period it had accounted for numerous transactions improperly and thus filed with the commission materially misleading financial statements along with having material weaknesses in its internal controls over financial reporting.

"We are pleased to have entered into this settlement with the SEC regarding this legacy matter and look forward to continuing to place our focus on the company's strategic growth initiatives," Chief Executive Jeff Miller said. "This matter relates to historical transactions that the company restated almost four years ago, and Synchronoss believes that reaching this resolution now is the right outcome for our shareholders, customers and key stakeholders."

Write to Michael Dabaie at [e-mail]

(END) Dow Jones Newswires

June 07, 2022 11:00 ET (15:00 GMT)

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