BISYS, a provider of outsourcing applications for the financial services industry that has just been bought by Citigroup, has completed its previously disclosed settlement with the Securities and Exchange Commission (SEC) with respect to the SEC’s investigation into its 2004 and 2005 restatements.
Under the settlement, BISYS has agreed, without admitting or denying any wrongdoing, to refrain from future violations of the reporting, books and records and internal control provisions of the federal securities laws and related SEC rules.
As previously disclosed, the company will pay $25.1 million in disgorgement and prejudgment interest, which amount was placed in escrow in January as part of the settlement. The settlement concludes the SEC’s investigation.
“Led by the audit committee, our board and management have cooperated fully with the SEC staff, and we are pleased to have reached this resolution, which we believe is in the best interest of BISYS and its shareholders,” says Robert Casale, chairman and interim CEO and president of BISYS. “We have improved controls and procedures in our accounting practices, replaced key individuals throughout the firm, and worked to foster high ethical standards and produce reliable financial reporting for our shareholders.”