Defendant Name: JDA Software Group, Inc.

Defendant Type: Public Company
SIC Code: 7370
CUSIP: 46612K10

Initial Case Details

Legal Case Name In the Matter of JDA Software Group, Inc.
First Document Date 25-Sep-2014
Initial Filing Format Administrative Action
File Number 3-16164
Allegation Type Issuer Reporting and Disclosure
AAER 3585

Violations Alleged

Exchange Act
• Rule 12b-20
• Sec 13(a)
• Rule 13a-1
• Rule 13a-11
• Rule 13a-13
• Sec 13(b)(2)(A)
• Sec 13(b)(2)(B)

Resolutions

First Resolution Date 25-Sep-2014
Headline Total Penalty and Disgorgement $750,000

Related Documents:

34-73209 25-Sep-2014 Administrative Proceeding
Order Instituting Administrative and Cease-And-Desist Proceedings, Pursuant to Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions and a Cease-And-Desist Order
On September 25, 2014 the SEC instituted administrative proceedings pursuant to Section 21C of the Securities Exchange Act of 1934 against JDA Software Group, Inc. The SEC alleged that JDA Software Group "a software solutions company, materially misstated its revenue, net income, and other financial metrics in certain of its annual and quarterly reports."
2014-216 25-Sep-2014 Press Release--Administrative Proceeding
SEC Charges Arizona-Based Software Company for Inadequate Internal Accounting Controls Over Its Financial Reporting
On September 25, 2014, the SEC announced that it sanctioned Scottsdale, Arizona-based software company JDA Software Group, Inc. ("JDA") for having inadequate internal accounting controls over its financial reporting, which resulted in misstated revenues in public filings. According to the SEC's order instituting a settled administrative proceeding, JDA failed to properly recognize and report revenue from certain software license agreements it sold to customers because its internal accounting controls failed to consider information needed for determining a critical component of revenue recognition for software companies. If companies are unable to demonstrate this component--known as vendor specific objective evidence of fair value ("VSOE")--when determining the fair value of certain services related to a software license agreement, then they cannot immediately recognize the entire revenue from that agreement. With proper internal controls that appropriately considered VSOE, JDA would have recognized revenue from certain sales ratably over the term of a services agreement. The SEC's order finds that JDA violated the reporting, books and records, and internal controls provisions of the federal securities laws. In agreeing to settle the charges without admitting or denying the SEC's findings, JDA consented to the SEC's order imposing a $750,000 penalty and requiring the company to cease and desist from committing or causing any violations or any future violations of federal securities laws.