Defendant Name:
ModusLink Global Solutions, Inc.
Defendant Type:
Public Company
SIC Code:
6719
CUSIP:
60786L20
Document Reference:
33-10055
Document Details
Legal Case Name
In the Matter of ModusLink Global Solutions, Inc., Joseph C. Lawler, Steven G. Crane, and Catherine L. Venable
Document Name
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
Document Date
15-Mar-2016
Document Format
Administrative Proceeding
AAER
3758
Allegation Type
Issuer Reporting and Disclosure
Document Summary
On March 15, 2016, the SEC instituted settled cease-and-desist proceedings against ModusLink Global Solutions, Inc., Joseph C. Lawler, Steven G. Crane, and Catherine L. Venable. According to the SEC: "ModusLink is a Massachusetts-based company that provides supply chain and logistics services to other companies. In providing products and services to its clients, ModusLink routinely purchased products and services from third-party vendors on behalf of its clients. ModusLink also routinely obtained rebates from vendors. In numerous instances, and without a sufficient basis to conclude that it was entitled to do so, ModusLink kept rebates that should have benefited certain ModusLink clients, which were contractually entitled to them under cost-plus and pass-through contracts. In some other instances, ModusLink marked-up the prices charged by the vendors and billed the higher price to certain ModusLink clients, also in contravention of their contracts. ModusLink had no legal entitlement to these rebates and mark-ups and inappropriately included these sums in computing and reporting its revenue and net income in its financial statements filed with the Commission."
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Monetary Penalties:
Civil Penalty
Individual:
$1,600,000.00
Shared:
Other Defendants in Action:
