A new risk-based data analytics initiative at the Securities and Exchange Commission (SEC) has been credited for forming the basis of charges against two publicly traded companies for improper reporting of quarterly earnings per share (EPS).
Interface, a Georgia-based modular carpet manufacturer, and Pennsylvania-based Fulton Financial Corp. agreed to pay fines of $5 million and $1.5 million, respectively, to settle charges that the way they reported their EPS improperly inflated their revenue and stock prices. Two Interface executives were also fined and suspended from appearing before the SEC.
