Defendant Name: Interface, Inc.

Defendant Type: Public Company
SIC Code: 2270
CUSIP: 45866530

Initial Case Details

Legal Case Name In the Matter of Interface, Inc., Gregory J. Bauer, CPA, and Patrick C. Lynch, CPA
First Document Date 28-Sep-2020
Initial Filing Format Administrative Action
File Number 3-20085
Allegation Type Issuer Reporting and Disclosure
AAER 4175

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)
Securities Act
• Sec 17(a)(2)
• Sec 17(a)(3)
Additionally, Gregory J. Bauer, CPA is alleged to have caused Interface, Inc.'s violation of Rule 12b-20 of the Exchange Act (willfully/knowingly).
Patrick C. Lynch, CPA is alleged to have caused Interface, Inc.'s violation of Rule 12b-20 of the Exchange Act (willfully/knowingly).
Gregory J. Bauer, CPA is alleged to have caused Interface, Inc.'s violation of Sec 13(a) of the Exchange Act (willfully/knowingly).
Patrick C. Lynch, CPA is alleged to have caused Interface, Inc.'s violation of Sec 13(a) of the Exchange Act (willfully/knowingly).
Gregory J. Bauer, CPA is alleged to have caused Interface, Inc.'s violation of Rule 13a-1 of the Exchange Act (willfully/knowingly).
Patrick C. Lynch, CPA is alleged to have caused Interface, Inc.'s violation of Rule 13a-1 of the Exchange Act (willfully/knowingly).
Gregory J. Bauer, CPA is alleged to have caused Interface, Inc.'s violation of Rule 13a-11 of the Exchange Act (willfully/knowingly).
Patrick C. Lynch, CPA is alleged to have caused Interface, Inc.'s violation of Rule 13a-11 of the Exchange Act (willfully/knowingly).
Gregory J. Bauer, CPA is alleged to have caused Interface, Inc.'s violation of Rule 13a-13 of the Exchange Act (willfully/knowingly).
Patrick C. Lynch, CPA is alleged to have caused Interface, Inc.'s violation of Rule 13a-13 of the Exchange Act (willfully/knowingly).
Gregory J. Bauer, CPA is alleged to have caused Interface, Inc.'s violation of Sec 13(b)(2)(A) of the Exchange Act (willfully/knowingly).
Patrick C. Lynch, CPA is alleged to have caused Interface, Inc.'s violation of Sec 13(b)(2)(A) of the Exchange Act (willfully/knowingly).
Gregory J. Bauer, CPA is alleged to have caused Interface, Inc.'s violation of Sec 13(b)(2)(B) of the Exchange Act (willfully/knowingly).
Patrick C. Lynch, CPA is alleged to have caused Interface, Inc.'s violation of Sec 13(b)(2)(B) of the Exchange Act (willfully/knowingly).

Resolutions

First Resolution Date 28-Sep-2020
Headline Total Penalty and Disgorgement $5,000,000

Related Documents:

33-10854 28-Sep-2020 Administrative Proceeding
Order Instituting Public Administrative and Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933, Sections 4C and 21C of the Securities Exchange Act of 1934, and Rule 102(e) of the Commission's Rules of Practice, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
The SEC stated: "From the second quarter of 2015 through the second quarter of 2016, Interface, a global designer and manufacturer of modular carpet, reported earnings per share ("EPS") that did not accurately reflect the company's underlying performance."
2020-226_3-20085 28-Sep-2020 Press Release--Administrative Proceeding
SEC Charges Companies, Former Executives as Part of Risk-Based Initiative
The SEC stated: "The SEC's order against Interface Inc., a Georgia-based modular carpet manufacturer, finds that in multiple quarters in 2015 and 2016, the company made unsupported, manual accounting adjustments that were not compliant with GAAP. These adjustments were often made when Interface's internal forecasts indicated that the company would likely fall short of analyst consensus EPS estimates. The order finds that the adjustments boosted the company's income, making it possible for Interface to consistently report earnings that met or exceeded consensus estimates."

Other Defendants in Action:

Gregory J. Bauer, CPA
Patrick C. Lynch, CPA