Saks Incorporated announced that it has consented to the entry of a final judgment that settles the Securities and Exchange Commission investigation previously disclosed by the Company.
In concluding the settlement, the Company consented to the entry of a final judgment by the United States District Court for the Southern District of New York without admitting or denying the allegations of the complaint filed by the SEC.
The final judgment permanently enjoins the Company and its officers and employees from violating the federal securities laws related to the Company’s reporting, record-keeping and internal controls.
No fines or other monetary sanctions were levied against the Company. The Company fully cooperated with the SEC during the course of the SEC’s investigation.
The SEC’s investigation related to improper collections of vendor markdown allowances prior to 2004 and a 2002 internal investigation into these collections, the improper timing of the recording of inventory markdowns in 1999 and 2001 and related accounting and disclosure issues.
These matters had been the subject of an internal investigation by the Audit Committee of the Company’s Board of Directors in 2004 and 2005 that was conducted at management’s request.
In 2004, the Company voluntarily informed the SEC of the Audit Committee’s internal investigation.
Stephen I. Sadove, Chairman and Chief Executive Officer of the Company, stated “I am pleased that this settlement with the SEC puts these matters behind us as we continue to execute our strategies for the long-term success of our business.”
Saks Incorporated
Saks reaches settlement with SEC
