Defendant Name: Rollins, Inc.

Defendant Type: Public Company
SIC Code: 7342
CUSIP: 77571110

Initial Case Details

Legal Case Name In the Matter of Rollins, Inc., and Paul Edward Northen
First Document Date 18-Apr-2022
Initial Filing Format Administrative Action
File Number 3-20824
Allegation Type Issuer Reporting and Disclosure

Violations Alleged

Exchange Act
• Rule 12b-20
• Sec 13(a)
• Rule 13a-11
• Rule 13a-13
• Rule 13a-15
• Sec 13(b)(2)(A)
• Sec 13(b)(2)(B)
Securities Act
• Sec 17(a)(2)
• Sec 17(a)(3)
Additionally, Paul Edward Northen is alleged to have caused Rollins, Inc.'s violation of Rule 12b-20 of the Exchange Act.
Paul Edward Northen is alleged to have caused Rollins, Inc.'s violation of Sec 13(a) of the Exchange Act.
Paul Edward Northen is alleged to have caused Rollins, Inc.'s violation of Rule 13a-11 of the Exchange Act.
Paul Edward Northen is alleged to have caused Rollins, Inc.'s violation of Rule 13a-13 of the Exchange Act.
Paul Edward Northen is alleged to have caused Rollins, Inc.'s violation of Rule 13a-15 of the Exchange Act.
Paul Edward Northen is alleged to have caused Rollins, Inc.'s violation of Sec 13(b)(2)(A) of the Exchange Act.
Paul Edward Northen is alleged to have caused Rollins, Inc.'s violation of Sec 13(b)(2)(B) of the Exchange Act.
Paul Edward Northen is alleged to have caused Rollins, Inc.'s violation of Sec 17(a)(2) of the Securities Act.
Paul Edward Northen is alleged to have caused Rollins, Inc.'s violation of Sec 17(a)(3) of the Securities Act.

Resolutions

First Resolution Date 18-Apr-2022
Headline Total Penalty and Disgorgement $8,000,000

Related Documents:

33-11052 18-Apr-2022 Administrative Proceeding
Order Instituting Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933 and Section 21C of the Securities Exchange Act of 1934, Making Findings and Imposing a Cease-and-Desist Order
On April 18, 2022, the SEC instituted cease-and-desist proceedings against Rollins, Inc., and Paul Edward Northen, stating: "This matter involves improper earnings management practices by Rollins, Inc. (“Rollins”). During the quarterly close process in two quarters—the first quarter of 2016 and the second quarter of 2017—Rollins’ then-Chief Financial Officer, Paul Edward Northen, directed reductions to certain corporate-level accounting reserves for the purpose of enabling the company to publicly report earnings per share (“EPS”) in line with research analysts’ consensus estimates."
2022-64 18-Apr-2022 Press Release--Administrative Proceeding
Atlanta-Based Pest Control Company, Former CFO Charged with Improper Earnings Management
The SEC "announced that Rollins Inc. agreed to pay $8 million to settle charges that it engaged in improper accounting practices in order to boost its publicly-reported quarterly earnings per share (EPS) to meet research analysts’ consensus estimates."

Other Defendants in Action:

Paul Edward Northen