SouthPeak Comments on CFO Woes, SEC Troubles

December 8, 2010 -

Publisher SouthPeak issued a statement this week in response to a Cease and Desist letter it received last week from the U.S. Securities and Exchange Commission. In that statement, the publisher admitted that it had not filed its financial reports properly - related to a loan made by Chairman Terry Philips - but claimed that it was an error it later tried to correct prior to the U.S. Securities and Exchange Commission's action against the company.

"The SEC staff's inquiry was fully disclosed in our public filings and was based on the manner in which we recorded a loan during this quarter which was made by our chairman to help support our business but was not properly reported in our financial statements.

"During the investigation, we fully explained to the SEC staff that when we discovered the error in our statements, we acted promptly on our own accord with the support of our auditor and outside counsel to fully rectify the issue. The recommendation of the SEC staff resulting from this investigation is that cease and desist orders issue in which we agree to comply with our SEC filing obligations in the future.

"We are currently negotiating the exact provisions of the orders," it continued. "The SEC is not proposing that our company be prohibited from doing business as some are saying , but rather, as is the case with proceedings of like nature, the SEC is trying to assure our company's compliance in the future with our reporting obligations."

The publisher also denied that its outgoing CFO is planning to take future legal action against the company, describing her exodus as voluntary and amicable. The company made no comment on the previous CFO, Andrea Jones, who was asked to leave in August. She is suing the company for "retaliation against a whistle blower and wrongful termination" and is seeking lost wages, benefits and punitive damages. SouthPeak disputes her claims.

On a related note, SouthPeak has sold the UK rights to action-RPG Two Worlds II back to series creator TopWare Interactive, who plans to self-publish in January. The company opened up a new office in the UK this week. SouthPeak will remain the game's US and Australian publisher.

Source: GI.Biz


 
Forgot your password?
Username :
Password :

Poll

Which video game platform are you most thankful for?:

Shout box

You're not permitted to post shouts.
Matthew WilsonI kinda hope this is not true. http://www.nintendolife.com/news/2014/11/nintendo_might_not_be_making_more_gamecube_controller_adapters_at_the_moment11/27/2014 - 1:34pm
Matthew WilsonI saw that. I wish people would stop preording, but sadly that will never happen.11/27/2014 - 1:26pm
Papa MidnightUbisoft has cancelled the Season Pass for Assassin's Creed: Unity (http://www.reddit.com/r/pcmasterrace/comments/2ni2ac/ubisoft_cancel_season_pass_for_ac_unity/)11/27/2014 - 1:08pm
NeenekoBut now I can use the christmas discount justification too,11/27/2014 - 11:46am
NeenekoI am also sorely temped by Civ:BE, mostly because I have a demo coming up and I know my productivity will tank.11/27/2014 - 11:45am
MaskedPixelanteThe Evil Within is only a month old, right? And it's already 66% off...11/27/2014 - 10:29am
MechaCrashI held off on Civ:BE because I am pretty sure it'll get a bigger discount during the Christmas sale.11/26/2014 - 11:09pm
MechaTama31I'm sorely tempted by Civ: BE, but I have to stay strong and remember what it felt like to be repeatedly kicked in the junk by Civ V...11/26/2014 - 10:58pm
MechaCrashNah, just providing more proof that GGers are lying when they claim it's really about ethics in game journalism and not a proxy war against feminism.11/26/2014 - 9:58pm
MaskedPixelanteMSS is Murdered: Soul Suspect.11/26/2014 - 8:34pm
Andrew EisenWhy the interest in Ghomeshi? Is it relevant to something we've been discussing? (Not saying it's not but it seems a rather random thing to bring up.)11/26/2014 - 6:39pm
WonderkarpJian Ghomeshi arrested on sex assault charges, released on $100K bail http://www.citynews.ca/2014/11/26/jian-ghomeshi-arrested-on-sex-assault-charges-released-on-100k-bail/11/26/2014 - 5:55pm
WonderkarpJian Ghomeshi to #Gamergate: Our culture’s toxic masculinity crisis on display http://www.salon.com/2014/10/27/jian_ghomeshi_to_gamergate_americas_toxic_masculinity_crisis_on_display/11/26/2014 - 5:55pm
WonderkarpI saw that. Amiibos are pretty awesome. I have 10 now :P11/26/2014 - 5:49pm
Matthew Wilsonon a weird side of smash news, a level 50 Amiibo almost won a tournament. http://www.siliconera.com/…/story-fox-amiibo-nearly-won-su…/ I guess Nintendo made the cpu ai better.11/26/2014 - 5:44pm
WonderkarpAny of you guys watch Game Grumps? They have an episode detailing alot of the bugs in the hilariously bad Sonic Boom https://www.youtube.com/watch?v=O3Jb3A0HLe4&list=UU9CuvdOVfMPvKCiwdGKL3cQ11/26/2014 - 4:19pm
Andrew EisenI'm blanking. What's MMS?11/26/2014 - 4:16pm
james_fudgeI keep an eye on it for really good deals11/26/2014 - 4:00pm
MaskedPixelanteEhh, MSS is only half off, I can wait for it to go under 1011/26/2014 - 3:48pm
NeenekoWhich is why I completely ignore the site.11/26/2014 - 3:15pm
 

Be Heard - Contact Your Politician