Defendant Name:
TheStreet, Inc.
Defendant Type:
Public Company
Document Reference:
2012-270
Document Details
Legal Case Name
SEC v. TheStreet, Inc.
Document Name
SEC Charges Financial Media Company and Executives Involved in Accounting Fraud
Document Date
18-Dec-2012
Document Format
Civil Proceeding
Case Number
12-cv-09187
Federal District Court
New York, Southern District of New York
Allegation Type
Issuer Reporting and Disclosure
Document Summary
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.
Disgorgement & Penalty Information
