SEC Charges Skechers with Making Undisclosed Payments to Executives’ Family Members
Skechers U.S.A. Inc. settled SEC charges for failing to disclose related-person transactions and executive personal expenses by paying a $1.25 million civil penalty.
Skechers U.S.A. Inc. agreed to pay a $1.25 million civil penalty to settle SEC charges regarding failures in related-person transaction disclosures between 2019 and 2022. The company violated reporting and proxy solicitation provisions of the Securities Exchange Act of 1934 by omitting details about executive relatives and unpaid personal expenses exceeding $120,000. The settlement includes a cease-and-desist order without the company admitting or denying the findings.
Skechers U.S.A. Inc. has agreed to settle SEC charges for failing to disclose various related-person transactions between 2019 and 2022. The omissions included the employment of two relatives of executives, a consulting relationship with an executive's household member, and over $120,000 in personal expenses owed to the company by two executives. These failures violated the reporting and proxy solicitation provisions of the Securities Exchange Act of 1934. To resolve the matter, Skechers agreed to a cease-and-desist order and a $1.25 million civil penalty. The company settled the enforcement action without admitting or denying the SEC’s specific findings. This action highlights the importance of disclosing transactions that allow investors to evaluate relationships between a company and its leadership.
Exhibits & Attached Documents (1)
Extracted insights
- $1.25M $1.25 million $1M–$10M
- $120K $120,000 $100K–$1M
- agency sec’s order
- company skechers u.s.a. inc.
- company two executives owed more than $120,000 to company
- Skechers U.S.A. Inc. Agreed To Settle Charges
- Skechers Agreed To Pay $1.25 Million Civil Penalty
- Skechers Did Not Comply With Related Person Transaction Disclosure Requirements
- Skechers Failed To Disclose Employment Of Two Relatives Of Its Executives
- Skechers Failed To Disclose Consulting Relationship Involving Household Member Of Executive
- Skechers Failed To Disclose Two Executives Owed More Than $120,000 To Company
- Scott A. Thompson Said Disclosure Of Related Person Transactions Provides Important Information For Investors
- SEC’s Order Finds Skechers Violated Reporting And Proxy Solicitation Provisions Of Securities Exchange Act Of 1934
- Skechers Agreed To Cease-And-Desist Order
The Securities and Exchange Commission today announced that Skechers U.S.A. Inc., a footwear company based in California, agreed to settle charges for failing to disclose payments for the benefit of its executives and their immediate family members. Skechers agreed to pay a $1.25 million civil penalty to settle the SEC’s charges. According to the SEC’s order, from 2019 through 2022, Skechers did not comply with related person transaction disclosure requirements when it failed to disclose its employment of two relatives of its executives and did not disclose a consulting relationship involving a person who shared a household with one of its executives. Furthermore, according to the SEC’s order, for multiple years, Skechers failed to disclose that two of its executives owed more than $120,000 to the company for personal expenses that had been paid for by Skechers but not yet reimbursed by the executives. “Disclosure of related person transactions provides important information for investors to evaluate the overall relationship between a company and its officers and directors,” said Scott A. Thompson, Associate Director of Enforcement in the SEC’s Philadelphia Regional Office. “Today’s action is a reminder that companies should take appropriate measures to ensure proper disclosure of such transactions.” The SEC’s order finds that Skechers violated reporting and proxy solicitation provisions of the Securities Exchange Act of 1934. Without admitting or denying the SEC’s findings, Skechers agreed to a cease-and-desist order and to pay the civil monetary penalty referenced above. The SEC’s investigation was conducted by Oreste P. McClung and Brian R. Higgins and was supervised by Brendan P. McGlynn, Mr. Thompson, and Nicholas P. Grippo, all with the Philadelphia Regional Office.
The Securities and Exchange Commission today announced that Skechers U.S.A. Inc., a footwear company based in California, agreed to settle charges for failing to disclose payments for the benefit of its executives and their immediate family members. Skechers agreed to pay a $1.25 million civil penalty to settle the SEC’s charges. According to the SEC’s order, from 2019 through 2022, Skechers did not comply with related person transaction disclosure requirements when it failed to disclose its employment of two relatives of its executives and did not disclose a consulting relationship involving a person who shared a household with one of its executives. Furthermore, according to the SEC’s order, for multiple years, Skechers failed to disclose that two of its executives owed more than $120,000 to the company for personal expenses that had been paid for by Skechers but not yet reimbursed by the executives. “Disclosure of related person transactions provides important information for investors to evaluate the overall relationship between a company and its officers and directors,” said Scott A. Thompson, Associate Director of Enforcement in the SEC’s Philadelphia Regional Office. “Today’s action is a reminder that companies should take appropriate measures to ensure proper disclosure of such transactions.” The SEC’s order finds that Skechers violated reporting and proxy solicitation provisions of the Securities Exchange Act of 1934. Without admitting or denying the SEC’s findings, Skechers agreed to a cease-and-desist order and to pay the civil monetary penalty referenced above. The SEC’s investigation was conducted by Oreste P. McClung and Brian R. Higgins and was supervised by Brendan P. McGlynn, Mr. Thompson, and Nicholas P. Grippo, all with the Philadelphia Regional Office.