The Securities and Exchange Commission’s review of companies’ earnings per share has brought cases against three firms over the past year or so, and could come into greater focus under the regulator’s new leadership.
The initiative, launched a few years ago, reviews earnings per share for the majority of U.S. public companies at least once a year, looking to spot questionable reported figures. The team working on the effort, part of the SEC’s enforcement division, uses analytics and has built a database to try to pinpoint potential manipulators of EPS, the commonly used measure of a company’s financial performance.
‘Enforcement 40’ for 2020
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