Foamex International agreed this month to settle an investigation by the Securities and Exchange Commission relating to the company’s internal controls. The SEC’s informal inquiry of Foamex—which was revealed in April—marked what appeared to be the first time that a Commission investigation specifically targeting internal controls under The Sarbanes-Oxley Act of 2002 had been made public.
In settling the matter, Lynnwood, Penn.-based Foamex did not admit to any wrongdoing or have to pay a fine. However, the company did agree to a cease and desist order that, among other things, requires that a special consultant issue a special report making ...