The U.S. Securities and Exchange Commission (SEC) announced on Wednesday that it has fined five public companies and six corporate insiders for their failure to report important information about stock holdings and trading activities.
Two of the companies implicated in the filing failures are Lattice Semiconductor and SolarEdge Technologies. The SEC has accused these companies, along with Cumberland Pharmaceuticals, eXp World Holdings, and AgEagle Aerial Systems, of contributing to the delinquencies of their officers and directors.
Although the accused parties have not admitted or denied the allegations, they have agreed to pay civil fines ranging from $115,000 to $200,000.
In addition to the fines imposed on the companies, the SEC has also taken action against six individuals. These individuals’ alleged reporting failures, combined with those of the five companies, resulted in the market being deprived of timely information regarding transactions worth over $90 million, according to Enforcement Director Gurbir Grewal.
These recent actions by the SEC are part of their ongoing efforts to enforce rules pertaining to stock ownership by corporate officers, directors, and beneficial owners who own more than 5% of a company’s outstanding shares.
SEC Fines AgEagle Aerial Systems and SolarEdge Technologies Executives
The Securities and Exchange Commission (SEC) has taken legal action against several individuals over reporting failures. Nicole Fernandez-McGovern, the Chief Financial Officer of AgEagle Aerial Systems, and Avery More, a director of SolarEdge Technologies, have both agreed to settle the claims without admitting any wrongdoing.
Nicole Fernandez-McGovern will pay a $125,000 penalty, while Avery More will be fined $86,000. AgEagle and SolarEdge have not yet commented on the matter.
In addition, the SEC has also filed civil claims against Matthias Heilmann, the former CEO of Baker Hughes’ digital solutions business. Heilmann will settle the reporting failure claims by paying a $143,000 fine.
Furthermore, the SEC has taken legal action against Joseph Theodore Lukens Jr., who is a beneficial owner of Workhorse Group, Peixin Xu, who is a director and beneficial owner of Cineverse, and Lawrence Rosen, who is a beneficial owner of JAKKs Pacific, FuelCell Energy, and other companies. Lukens will pay a $120,000 fine, while Xu and Rosen will each be penalized with a $150,000 penalty.
Representatives for Lattice Semiconductor, Cumberland Pharmaceuticals, and eXp World Holdings have not yet responded to requests for comment regarding the SEC claims.
It is important to note that all individuals involved have settled the allegations without admitting any misconduct.