Bellevue-based Paccar will pay $225,000 to settle Securities and Exchange Commission
that it misinformed investors and regulators through “various accounting deficiencies that clouded their financial reporting,” the agency said Monday.
The company, without admitting or denying the charges, agreed to the penalty and to a permanent injunction against future violations.
Robert Christensen, Paccar’s chief financial officer since December, said the SEC investigation resulted in “no changes to the company’s net profit.”
In a federal civil suit filed Monday, the SEC listed three areas where the global truck manufacturer’s financial reports fell short between 2008 and 2012.
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The company for several years “failed to report the operating results for its parts business as a reportable segment, as required by Generally Accepted Accounting Principles (GAAP),” according to the lawsuit. That means investors did not get certain information they should have had, the SEC said.
Also, during 2009 the company and its finance subsidiary “failed to maintain accurate books and records regarding their impaired loans and leases,” and understated those liabilities.
Finally, according to the suit, Paccar “made overstatements in equal and offsetting amounts to loan and lease originations and collections for two foreign subsidiaries in its statement of cash flows for two quarters in 2009.”
The SEC charged both Paccar and its Paccar Financial unit with violating the reporting, books and records, and internal control provisions of federal securities laws.
The settlement, which is subject to court approval, takes into account the company’s implementation of “remedial measures to enhance their internal accounting controls and improve their compliance with GAAP,” the SEC said.
Christensen said in a telephone interview that Paccar fully cooperated with the SEC probe, which began more than a year ago.
Since the review, Paccar “has enhanced its segment reporting and we have implemented additional procedures for our finance business,” he said.
Michael Dicke, associate regional director of the SEC’s San Francisco regional office, said in a statement that “the deficient controls and procedures at Paccar caused inconsistencies in its financial reporting and kept investors and regulators from seeing the company through the eyes of management.”
Paccar stock closed up 12 cents, or 0.2 percent, at $53.72 Monday.