Defendant Name: Healthcare Services Group, Inc.

Defendant Type: Public Company

Document Reference: 2021-162

Document Details

Legal Case Name In the Matter of Health Sciences Group, Inc., John C. Shea, CPA, and Derya D. Warner
Document Name SEC Charges Healthcare Services Company and CFO for Failing to Accurately Report Loss Contingencies as part of Continuing EPS Initiative
Document Date 24-Aug-2021
Document Format Administrative Proceeding
File Number 3-20468
Allegation Type Issuer Reporting and Disclosure
Document Summary The SEC "announced that Pennsylvania-based Healthcare Services Group, Inc. has agreed to pay $6 million to settle charges that the company engaged in accounting and disclosure violations that enabled the company to report inflated quarterly earnings per share (EPS) that met research analysts' consensus estimates for multiple quarters."

Disgorgement & Penalty Information

Resolutions
Cease and Desist Order
Monetary Penalties:

Civil Penalty

Individual:     $6,000,000.00 Shared:    

Related Documents:

33-10967 24-Aug-2021 Administrative Proceeding
Order Instituting Public Administrative and Cease-and-Desist Proceeding 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
On August 24, 2021, the SEC instituted settled public administrative and cease-and-desist proceedings against Healthcare Services Group, Inc., John C. Shea, CPA, and Derya D. Warner stating: "This matter involves the failure of Healthcare Services Group, Inc. ("HCSG") to properly accrue for or disclose loss contingencies relating to pending civil litigation in violation of generally accepted accounting principles ("GAAP"), resulting in the reporting of inflated net income and earnings per share ("EPS") in certain periods."

Other Defendants in Action:

John C. Shea, CPA
Derya D. Warner