Surgalign Reaches Settlement with the Securities and Exchange Commission on Matters Related to Prior Management Between 2015-2019
04 August 2022 - 7:34AM
Surgalign Holdings, Inc., (NASDAQ: SRGA) reached a settlement with
the U.S. Securities and Exchange Commission (“SEC”) on August 3,
2022, concluding and resolving in its entirety the previously
disclosed SEC investigation relating to activities that occurred
between 2015 and 2019 by RTI Surgical Holdings, Inc., and RTI
Surgical, Inc. and the prior management. As reflected in the SEC’s
Order, those activities included pulling sales forward from future
quarters to address projected quarterly revenue shortfalls.
Under the terms of the settlement, the Company
has agreed to pay a civil penalty of US$2 million which was
recorded in full during the fourth quarter of 2021. As part of the
settlement, the Company has also agreed to refrain from future
violations of specified provisions of federal securities laws and
rules. In addition to the settlement, the Company is expected to
receive $0.6 million from former executives related to recouped
compensation.
The SEC acknowledged that in assessing
Surgalign’s offer of settlement, it took into consideration its
substantial cooperation with the Commission’s staff throughout the
investigation, including by disclosing information about conduct
that the staff had not yet uncovered through its own investigation,
conducting an internal investigation regarding this conduct, and
providing the staff regular and detailed updates on the internal
investigation and key documents identified through that
investigation.
“This investigation and the settlement reached
stems from the activities of RTI and former senior management, not
our current team. Reaching this settlement with the SEC will allow
us to move forward without this uncertainty and is one more issue
resolved in our effort to transform the company since we divested
the RTI OEM business roughly two years ago,” said David Lyle, Chief
Financial Officer of Surgalign. “We believe we are now at the tail
end of our transformation and are excited about the prospects of
returning to growth in 2023 through new spine product offerings and
the ramp of our HOLO Portal Surgical Guidance System coupled with
the expansion of our AI platform.”
About Surgalign Holdings, Inc.Surgalign
Holdings, Inc. is a global medical technology company committed to
the promise of digital health to drive transformation across the
surgical landscape. Uniquely aligned and resourced to advance the
standard of care, the company is building technologies physicians
and other health providers will look to for what is truly possible
for their patients. Surgalign is focused on developing solutions
that predictably deliver superior clinical and economic outcomes.
Surgalign markets products throughout the United States and in more
than 50 countries worldwide through an expanding network of top
independent distributors. Surgalign is headquartered in Deerfield,
IL, with commercial, innovation and design centers in San Diego,
CA, Warsaw and Poznan, Poland, and Wurmlingen, Germany. Learn more
at www.surgalign.com and connect on LinkedIn and Twitter.
Forward Looking StatementThis
press release contains forward-looking statements that are based on
management’s current expectations, estimates and projections about
our products, company, and industry, our management's beliefs, and
certain assumptions made by our management. Words such as
"anticipates," "expects," "intends," "plans," "believes," "seeks,"
"estimates," and other variations of such words and similar
expressions are intended to identify such forward-looking
statements. These statements are not guarantees of future
performance and are subject to risks and uncertainties, including
the risks described in our public filings with the U.S. Securities
and Exchange Commission (SEC). Our actual results may differ
materially from the anticipated results reflected in these
forward-looking statements. Copies of the company's SEC filings may
be obtained by contacting the company or the SEC or by visiting
Surgalign's website at www.surgalign.com or the SEC's
website at www.sec.gov.
Investor and Media Contact:Glenn WienerT: +1 917
887 8434E: gwiener@gwcco.com |
Surgalign Contact:Kristine SimmonsT: +1 619 206
4648E: ksimmons@surgalign.com |
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