Defendant Name: Quantum Corporation

Defendant Type: Public Company
SIC Code: 3572
CUSIP: 74790650

Initial Case Details

Legal Case Name In the Matter of Quantum Corporation
First Document Date 20-Dec-2019
Initial Filing Format Administrative Action
File Number 3-19626
Allegation Type Issuer Reporting and Disclosure
AAER 4110

Violations Alleged

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

Resolutions

First Resolution Date 20-Dec-2019
Headline Total Penalty and Disgorgement $1,000,000

Related Documents:

34-87812 20-Dec-2019 Administrative Proceeding
Order Instituting Cease-and-Desist Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order
On December 20, 2019, the SEC instituted cease-and-desist proceedings against Quantum Corporation. The SEC stated: "Between the fourth quarter of its 2015 fiscal year (which ended March 31, 2015) and the second quarter of its 2018 fiscal year (which ended September 30, 2017) ("the restatement period"), Quantum recognized revenue from dozens of transactions with channel partners without meeting the necessary revenue recognition criteria under Generally Accepted Accounting Principles ("GAAP"). These errors caused Quantum to materially overstate its revenue for certain reporting periods and to understate its revenue in other periods."
34-87812-s 20-Dec-2019 Administrative Summary
SEC Charges Quantum with Internal Accounting Controls Failures
The SEC stated that: "[It] charged Silicon Valley-based data storage company Quantum Corporation with internal accounting controls violations that resulted in repeated revenue recognition errors from 2015 to 2017. Quantum has agreed to pay a $1 million penalty to settle the charges."