|
Grace settles with SEC
|
 |
June 30, 1999: 4:42 p.m. ET
W.R. Grace, charged with misleading investors, will set up $1M fund
|
NEW YORK (CNNfn) - Chemical and packaging company W.R. Grace & Co. Wednesday settled a complaint by the Securities and Exchange Commission on charges of misleading investors. As part of the settlement, the company will establish a $1 million fund to promote accounting awareness.
Grace (GRA) agreed to cease and desist misleading accounting practices, without admitting or denying wrongdoing, and will establish the $1 million fund for awareness and education relating to financial statements and generally accepted accounting principles.
The SEC found that between 1991 and 1995 top management used excess reserves to bring the earnings of Grace's health care group in line with company targets.
During that time, Grace reported relatively steady growth rates, but in reality the growth rates fluctuated from an 8 percent decline to a 61 percent increase, the SEC reported.
The educational fund will be used by different programs in the public sector.
Grace said it is settling the case because it is in its best interest to "move forward with our plans to become an integrated operating company."
"The issues involved in this case relate to things that happened several years ago. Grace today is a different company with a new leadership team in place," the company said in a statement.
|
|
|
|
|
|
W.R. Grace
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
.
