Manipulation of internal controls

The SEC retained Brattle in a matter in which the SEC accused a company’s financial executives of manipulating internal controls to allow improper premature revenue recognition. Brattle supported an accounting and internal controls expert who examined the various controls that the defendants claimed to be effective. The expert opined that the company actually had a material weakness in its internal controls that the defendants failed to disclose to the company’s auditors and in its financial statements. The SEC settled this matter with the defendants.