On June 3, 2013, the SEC charged a Bellevue, Wash.-based, publicly-traded truck manufacturer with filing materially deficient financial statements and internal controls, and books and records violations for its failure to properly implement the segment reporting requirements. Compl., SEC v. PACCAR Inc., No. 13-cv-00953 (W.D. Wash. June 3, 2013). In its complaint, the SEC alleged that the issuer’s internal accounting controls were ineffective to ensure adherence to various accounting rules requiring the reporting of operating results of its two business segments. The SEC also alleged that the company failed to provide complete information about its respective loan and lease portfolios and overstated loan and lease originations and collections at two foreign subsidiaries in its statement of cash flows. Additionally, the SEC alleged that the company failed to maintain accurate books and records regarding its impaired loans and leases.
The SEC’s complaint charged the company with violations of Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Securities Exchange Act of 1934 and Rules 12b-20, 13a-1, and 13a-13 thereunder. On a neither an admit nor deny basis, the company agreed to the entry of a permanent injunction and to pay a $225,000 penalty.