Defendant Name:
TheStreet, Inc.
Defendant Type:
Public Company
SIC Code:
2711
CUSIP:
88368Q10
Initial Case Details
Legal Case Name
SEC v. TheStreet, Inc.
First Document Date
18-Dec-2012
Initial Filing Format
Civil Proceeding
Case Number
12-cv-09187
Allegation Type
Issuer Reporting and Disclosure
Federal District Court
New York, Southern District of New York
Resolutions
First Resolution Date
18-Dec-2012
Related Documents:
Complaint
On December 18, 2012, the SEC filed a complaint against TheStreet, Inc. The SEC alleged that TheStreet failed "to maintain sufficient internal controls over financial reporting, filing false reports, and failing to keep true and accurate books and records. These charges arise from improper revenue recognition throughout 2008 at a former subsidiary ... of TheStreet."
SEC Charges TheStreet, Inc. and Former Executives in Connection with Accounting Fraud
On December 18, 2012, the SEC announced that, without admitting or denying the SEC's allegations, theStreet, Inc. as well as Greg Alwin and David Barnett settled the SEC charges and agreed to be permanently enjoined from future violations of the securities laws.
2012-270
18-Dec-2012
Press Release--Civil Action
SEC Charges Financial Media Company and Executives Involved in Accounting Fraud
On December 18, 2012, the SEC charged TheStreet, Inc. and three executives for their roles in accounting fraud that artificially inflated company revenues and misstated operating income to investors. According to the Commission, after acquiring a subsidiary that specializes in online promotions, TheStreet failed to implement internal controls at the subsidiary which enabled accounting fraud. The SEC alleges that TheStreet, along with its individual co-respondents improperly recognized revenue based on sham transactions, used the percentage-of-completion method of revenue recognition without meeting fundamental prerequisites, and prematurely recognized revenue when the subsidiary had not performed actual work.
Final Judgment as to Defendant TheStreet, Inc.
On December 20, 2012, Federal District Judge John G. Koeltl entered final judgment against TheStreet, Inc. pursuant to the consent of TheStreet, Inc.
