SEC Sanctions 10 Companies for Disclosure Failures Surrounding Financing Deals and Stock Dilution

The SEC announced enforcement actions against 10 companies that failed to make the required disclosures about financing deals and other unregistered sales that diluted their stock.

SEC investigations found that each of the 10 companies failed to make the required Form 8-K disclosure for a stock dilution scenario. Additionally, three of the companies failed to use accurate numbers later when reporting the dilution of their common stock in quarterly or annual reports.

See: SEC Press Release.See also: SEC Investor Bulletin: How to Read a Form 8-K.