Synchronoss Technologies in a $12.5 million settlement with the SEC

By Michel Dabaie

Synchronoss Technologies Inc. said it has resolved a U.S. Securities and Exchange Commission investigation regarding the company’s restatement of certain financial data from 2013 through 2016.

Cloud, messaging and digital products and platforms company Synchronoss said in 2018 it reaffirmed the transactions at issue in the SEC’s investigation and settlement, neither admitted nor denied the allegations of the SEC.

As part of the settlement, Synchronoss said it agreed to pay a civil penalty of $12.5 million. The expenses associated with this settlement have already been accounted for in the financial statements, the company said.

Its shares were down 3.2% at $1.52 in morning trading.

The SEC said the allegations relate to long-standing accounting irregularities that unfolded from 2013 to 2017.

In a filing with the SEC in July 2018, Synchronoss said it restated its audited financial statements for the years ended December 31, 2015 and 2016 and restated certain financial data for the years ended 2013 and 2014 totaling approximately $190 million from income.

According to the SEC, Synchronoss admitted that during this period it had incorrectly accounted for numerous transactions and therefore filed with the commission materially misleading financial statements as well as material weaknesses in its internal controls over financial reporting. .

“We are pleased to have reached this settlement with the SEC regarding this legacy matter and look forward to continuing to focus on the company’s strategic growth initiatives,” Chief Executive Officer Jeff Miller said. “This matter relates to historic transactions that the company reformulated nearly four years ago, and Synchronoss believes reaching this resolution now is the right outcome for our shareholders, customers and key stakeholders.”

Write to Michael Dabaie at [email protected]

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