Logitech paid a $7.5 million SEC penalty over improper and fraudulent accounting
Company: Logitech International SA
Summary
In April 2016, Logitech International S.A. agreed to pay a $7.5 million civil penalty to settle a U.S. Securities and Exchange Commission enforcement action concerning recurring improper accounting between 2009 and 2014. The SEC found that the misconduct included fraudulent accounting for the write-down of a failed product in Logitech's fiscal 2011 financial statements, improper accounting for warranty liabilities and intangible assets, and books-and-records, reporting and internal-control violations involving revenue recognition. The SEC stated that the accounting for the failed product inflated Logitech's fiscal 2011 operating income by approximately $30.7 million, or more than 27 percent, helping the company meet earnings guidance. Logitech settled the administrative proceeding without admitting or denying the SEC's findings. Sources / proof: U.S. Securities and Exchange Commission order: https://www.sec.gov/files/litigation/admin/2016/34-77644.pdf SEC investor-distribution case page: https://www.sec.gov/divisions/enforce/claims/logitech-bardman.htm
Record details
- Category
- Corporate Misconduct
- When it happened
- 2009–2014
- Status
- Resolved (April 19, 2016)
- Severity
- high
- Added to Rotten Company
Source
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