Close

Are you in compliance?

Don't miss out! Sign up today for our weekly newsletters and stay abreast of important GRC-related information and news.

×

Status message

Start your free, no obligation 10-day trial to continue exploring with full access.

SEC charges Osiris Therapeutics with accounting fraud

Jaclyn Jaeger | November 3, 2017

The Securities and Exchange Commission this week charged biotech company Osiris Therapeutics and four former top executives with prioritizing revenue growth over lawful accounting and misleading investors in the process. Osiris Therapeutics agreed to settle the charges without admitting or denying the allegations and must pay a $1.5 million penalty.

The SEC alleges that Osiris Therapeutics routinely overstated company performance and issued fraudulent financial statements for a period of nearly two years. According to the SEC’s complaint, the company improperly recognized revenue using artificially inflated prices, backdated documents to recognize revenue in earlier periods, and prematurely recognized revenue upon delivery of products to be held on consignment. Osiris Therapeutics and its executives also allegedly used pricing data that they knew was false and attempted to book revenue on a... To get the full story, subscribe now.