Summary
This 8-K filing from Cummins Inc. (CMI) on February 7, 2006, reports on an administrative cease and desist order entered into with the U.S. Securities and Exchange Commission (SEC). The order stems from an SEC finding that Cummins violated certain financial reporting, books and records, and internal controls provisions of federal securities laws. Importantly, the SEC did not find any violations of anti-fraud provisions, and Cummins is not required to pay any fines or penalties as part of this settlement. The issue originated from a potential understatement of historical accounts payable, which the company disclosed in January 2003. Cummins subsequently conducted a re-audit and restated its financial results for the years 2000 and 2001, filing these corrected results with its 2002 Form 10-K on August 4, 2003. The company cooperated fully with the SEC's informal inquiry throughout the process, and this settlement brings that inquiry to a close.
Key Highlights
- 1Cummins Inc. has settled an SEC administrative order without admitting or denying the findings.
- 2The order relates to violations of financial reporting, books and records, and internal controls provisions.
- 3The SEC found no violations of anti-fraud provisions.
- 4No fines or penalties will be imposed on Cummins.
- 5The issue involved a historical understatement of accounts payable, first disclosed in January 2003.
- 6Cummins restated financial results for 2000 and 2001 and filed corrected reports.
- 7The company cooperated fully with the SEC's informal inquiry.