The U.S. Securities and Exchange Commission (SEC) recently fined Skechers, the Manhattan Beach, California-based footwear company, $1.25 million over a civil settlement concerning unreported payments to executives and their relatives. This lapse has forced other public firms to practice rigorous vigilance in revealing related-party transactions.
From 2019 to 2022, Skechers supposedly engaged relatives of its executives but failed to shed light on this aspect in its securities filings. In addition, the footwear enterprise allegedly hid its relationship with the housemate of an executive who doubled as a consultant.
In the wake of the settlement, Skechers has neither admitted nor denied participating in any misconduct. However, the company has concurred with a cease-and-desist order aimed at preventing further similar behaviors.
For further details on this development, please follow the news report on www.law.com.