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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
Division’s 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 committee’s
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. |
