Sunrise Senior Living, Inc. (NYSE: SRZ) announced last week that it has reached a settlement agreement with the U.S. Securities and Exchange Commission ("SEC") relating to the SEC’s investigation. The complaint and investigation, previously disclosed by Sunrise, includes allegations with respect to the financial reporting from 2003 through 2005 relating to certain accrual and reserve accounts. As part of the terms of the settlement subject to court approval, Sunrise consented, without admitting or denying the allegations in the SEC’s complaint, to the entry of a judgment permanently enjoining the Company from violating the reporting, books and records and internal control provisions of the Securities Exchange Act of 1934.
As part of the settlement, The SEC is not seeking civil penalties against Sunrise and the settlement will reflect the cooperation provided by Sunrise during the investigation. Two former officers of the Sunrise, Larry E. Hulse and Kenneth J. Abod, also reached settlements with the SEC without admitting or denying the allegations against them in the complaint.
"We are very pleased to put this matter behind us," said Mark Ordan, Sunrise’s chief executive officer. "This is another very positive step in rebuilding the organization."
For the full details visit the 8-K.