SEC Charges the Cheesecake Factory for Misleading COVID-19 Disclosures

SEC

The Securities and Exchange Commission today announced settled charges against The Cheesecake Factory Incorporated for making misleading disclosures about the impact of the COVID-19 pandemic on its business operations and financial condition. The action is the SEC's first charging a public company for misleading investors about the financial effects of the pandemic.

The Cheesecake Factory stated that its restaurants were "operating sustainably" during the COVID-19 pandemic. According to the order, the filings were materially false and misleading because the company's internal documents at the time showed that the company was losing approximately $6 million in cash per week and that it projected that it had only 16 weeks of cash remaining. read more »

German prosecutors probe EY auditors over Wirecard collapse

REUTERS

German prosecutors on Friday opened an investigation into partners at EY who audited Wirecard, after an accounting watchdog filed a report accusing them of criminality in their work for the failed payments company.

Wirecard collapsed into insolvency in June after EY, its auditor for more than a decade, was unable to confirm the existence of 1.9 billion euros ($2.3 billion) purportedly held in offshore trustee accounts. read more »