WATSONVILLE, Calif. — West Marine Inc. has reached a settlement with the United States Securities and Exchange Commission that resolves the SEC’s investigation of the company, according to a release Thursday from West Marine.
The investigation was related to the facts and circumstances that gave rise to the company’s 2007 restatement of its financial results for fiscal years 2002 through 2005 and for the first three quarters of fiscal year 2006. According to West Marine, the restatement resulted from a company-initiated review in 2007, during which the company identified and corrected its accounting for indirect inventory cost capitalization.
Under the settlement, without admitting or denying the allegations made in the SEC’s complaint, the company consented to a permanent injunction against any future violations of Sections 17(a)(2) and (3) of the Securities Act of 1933, as amended, and Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Securities Exchange Act of 1934, as amended.
Chief Executive Officer Geoff Eisenberg said that after two years, West Marine is “pleased to have this matter finally behind us.”
“The settlement constrains our ability to comment on the SEC’s allegations,” Eisenberg said in the release. “I can say, however, that after nearly two years of cooperating with the SEC’s staff, we are very pleased to report that no fines, penalties or other monetary sanctions were assessed against the company. We also understand that the SEC is not proceeding against any of the company’s past or current Associates or Directors.”
Eisenberg went on to say that he was confident the company now has first-rate accounting practices, financial team leadership and internal controls.