London +4420 814 42225
Moscow +7495 543 9194
Kiev +38044 599 2950

Our Clients

Order Informer

Home > News >

RPM pays USD2 million to settle SEC investigation into disclosure violations

December 29/2020

MOSCOW (MRC) -- The US Securities and Exchange Commission (SEC) says that RPM International agreed to pay USD2 million to settle SEC's charges of accounting and disclosure violations related to a government investigation, according to Chemweek.

The SEC's complaint alleged that RPM failed to timely disclose a material loss contingency for a US Justice Department investigation. The US District Court for the District of Columbia entered a final judgment against RPM and Edward Moore, RPM's general counsel and chief compliance officer.

The judgment is related to disclosure and accrual of loss reserves in fiscal 2013 relating to RPM's Tremco Roofing Divisions General Services Administration (GSA) contracts. The restatement shifted accrual amounts among three quarters in RPM's fiscal 2013, which had the effect of reducing net income by USD7.2 million and USD10.8 million for the quarterly periods ended 31 August 2012 and 30 November 2012, respectively, and increasing net income for the quarterly period ended 28 February 2013 by USD18.0 million. RPM has previously said these restatements had no impact on audited financial statements for the full 2013 fiscal year. An RPM audit committees investigation concluded that there was no intentional misconduct on the part of any of its officers.

RPM agreed to pay a penalty of USD2 million. Moore agreed, without admitting or denying the complaint's allegations, to pay a penalty of USD22,500.

As MRC reported earlier, in January, 2017, RPM International Inc. announced that it ha acquired Prime Resins to be part of its USL Group.  Prime Resins is a manufacturer of specialty chemicals and equipment for infrastructure construction and repair.

We remind that Russia's output of chemical products rose in November 2020 by 9.5% year on year. At the same time, production of basic chemicals increased in the first eleven months of 2020 by 6.6% year on year, according to Rosstat's data. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the January-November 2020 output. Last month"s production of polymers in primary form rose to 896,000 tonnes from 852,000 tonnes in October. Overall output of polymers in primary form totalled 9,240,000 tonnes over the stated period, up by 17.1%  year on year.
Author:Margaret Volkova
Tags:propylene, ethylene, petrochemistry, construction, Russia, USA.
Category:General News
| More

Leave a comment

MRC help


 All News   News subscribe