Sunrise Senior Living, Inc. (NYSE: SRZ) announced today that it has reached a settlement with the U.S. Securities and Exchange Commission ("SEC") relating to the SEC's previously disclosed investigation of the Company.
Under the settlement, the Company has consented, without admitting or denying the allegations in the SEC's complaint, to the entry of a judgment permanently enjoining the Company from violating the reporting, books and records and internal control provisions of the Securities Exchange Act of 1934. The SEC is not seeking to impose a civil penalty against the Company. The SEC indicated that the terms of the settlement with the Company reflect credit given to the Company for its substantial assistance in the investigation.
The SEC's complaint includes allegations with respect to the Company's financial reporting during the relevant period from 2003 through 2005 relating to certain Company accrual and reserve accounts. Two former officers of the Company, Larry E. Hulse and Kenneth J. Abod, also reached settlements with the SEC without admitting or denying the allegations against them in the complaint. The Company believes the SEC will not be taking action against any other directors, officers or employees of the Company.
The settlements are subject to court approval.
"We are very pleased to put this matter behind us," said Mark Ordan, Sunrise's chief executive officer. "This is another very positive step in rebuilding the organization."