Defendant Name: View, Inc.

Defendant Type: Public Company

Document Reference: 2023-126

Document Details

Legal Case Name In the Matter of View, Inc.
Document Name SEC Charges "Smart" Window Manufacturer, View Inc., with Failing to Disclose $28 Million Liability
Document Date 03-Jul-2023
Document Format Administrative Proceeding
File Number 3-21505
Allegation Type Issuer Reporting and Disclosure
Document Summary On July 3, 2023, the SEC "announced settled charges against a California-based manufacturer of "smart" windows, View Inc., for failing to disclose $28 million in projected warranty-related liabilities to address a particular defect in its windows. The SEC decided not to impose civil penalties against View because the company self-reported the misconduct to the SEC, promptly undertook remedial measures, and cooperated with the staff's investigation."

Disgorgement & Penalty Information

Resolutions
Cease and Desist Order
Cooperation Before the Resolution
Remedial Acts or Efforts Before the Resolution
Self Reporting to SEC

Related Documents:

33-11208 03-Jul-2023 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 July 3, 2023, the SEC instituted settled cease-and-desist proceedings against View, Inc., stating: "In a series of periodic reports, proxy statements, and registration statements filed with the Commission from December 2020 to May 2021, View accrued and disclosed an estimated warranty liability of $22 million to $25 million, consisting largely of projected costs to manufacture replacements for windows with a particular defect. However, View had also decided to pay to ship and install the replacement windows (the “Installation Costs”). Including those expenses, it was probable and reasonably estimable that View would spend approximately $48 million to $53 million total to repair its windows. Therefore, under generally accepted accounting principles in the United States (“US GAAP”), View should have recognized and disclosed a warranty liability of approximately $48 million to $53 million, rather than the approximately $22 million to $25 million that it recognized and disclosed. As a result, View materially misstated its warranty liability for fiscal years 2019 and 2020 and the first quarter of 2021. Throughout this time, View had insufficient internal accounting and disclosure controls. View also failed to maintain books and records that accurately reflected the liabilities."

Related Actions:

SEC v. Vidul Prakash
Vidul Prakash