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


 
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Andrew EisenAnd I still don't see how articles like Polygon's "An awful week to care about video games" can be construed as an attack.07/31/2015 - 4:25pm
Andrew Eisen18 total? I've seen several lists and the total has never been above 14. The most popular collection seems to be 9 on Aug. 28 then three more on Aug. 29, Sep. 2 and Sep. 3.07/31/2015 - 4:24pm
Infophile@Goth_Skunk: Your distaste for TMS is noted and given exactly the respect it deserves. The fact that you don't like a site doesn't mean they can't be right. In the linked article, they are.07/31/2015 - 4:06pm
Goth_SkunkAnd the worst volleys are the ones being fired by the kind of people who should be standing up and saying 'Hey! This isn't cool! Stop that!'07/31/2015 - 4:05pm
Goth_SkunkNow let's come full circle: One such confrontationally titled article is easy to dismiss. Within a day, nine similarly titled articles are written. Within 4 more days, nine more articles are written. This can't be ignored. This is a blatant attack.07/31/2015 - 4:04pm
Andrew EisenAnd that's totally fine. I too often skip articles and videos based solely on an unappealing title.07/31/2015 - 3:56pm
Goth_SkunkPersonally, I would not waste time reading an article with such a blatantly confrontational title.07/31/2015 - 3:52pm
Andrew EisenGoth - Depends on how the article was written and what it actually said.07/31/2015 - 3:49pm
Goth_SkunkThis is like going fishing and castign a HUGE net that captures tuna, dolphins, sharks, cod, and salmon when all you really want to capture are clownfish.07/31/2015 - 3:48pm
Andrew EisenPerm - If the specific make and model are made clear, I have no problem with the article saving space by refering to them as "these cars" or whatever.07/31/2015 - 3:47pm
Goth_Skunk... Hasbro's widening horizons..." would it not make sense that some would object there is no distinction being made between a reactionary brony and a stable-minded brony?07/31/2015 - 3:47pm
Big PermCars are being recalled because they explode. Editors Note at the end: Not all cars, only this specific make and model07/31/2015 - 3:46pm
Andrew EisenI still feel it was clear that they were admonishing a particular and very specific type of gamer. It's why I had no problem with any of the articles (especially since about half of them weren't really about "gamers" anyway).07/31/2015 - 3:45pm
Goth_Skunk@Andrew: If a columnist had written a "Bronies Are Dead" article, but in the article stated: "Note: I'm not talking about every guy who watches MLP or who self-identifies as a brony, just the type of reactionary holdouts that feel so threatened by..."07/31/2015 - 3:45pm
benohawkYou would if you didn't care.07/31/2015 - 3:43pm
Big PermIf you're referring to a certain subset of gamers, you wouldn't refer to that subset under the umbrella term of gamer. Or at least I wouldn't, because I think that's ridiculous.07/31/2015 - 3:42pm
benohawkI buy it, I think they honestly have no problem with most gamers. But it was more important to get links and page views, so gamers were a whipping boy for the media again.07/31/2015 - 3:41pm
Big PermI won't defend people going too far with harassment or email campaigns, but I also won't say they're in the wrong for feeling hostility towards their identity.07/31/2015 - 3:41pm
Andrew EisenI do. I felt the articles made it very clear who specifically the authors were referring to.07/31/2015 - 3:41pm
Big PermIt's an attack on an identity. I don't buy "but we're not talking about you, we swear" for a moment.07/31/2015 - 3:40pm
 

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