Flowserve reaches settlement with SEC
Agrees to civil penalties of $400,000. Issue involved Regulation FD in reaffirming earnings guidance in an informal conversation with an analyst on Nov. 19, 2002...
DALLAS, March 24, 2005 (BUSINESS WIRE) -- Flowserve Corp. announced it has reached a settlement with the Securities and Exchange Commission resolving an investigation by the commission into a meeting that took place in Irving, Texas, on Nov. 19, 2002, between company executives, including the chief executive officer and the director of investor relations, and several analysts.
The company previously reported the matter in a news release dated May 25, 2004, that it issued upon receipt of a Wells Notice from the SEC (see: "Flowserve Receives Wells Notice Relating To Form 8-K Furnished Nov. 21, 2002".
Neither admitting nor denying liability under the disclosure requirements of Regulation FD and Section 13(a) of the Securities Exchange Act of 1934, the company, its chief executive officer and its director of investor relations have consented to a cease-and-desist order. Under the settlement, the company and its chief executive officer have agreed to pay civil penalties of $350,000 and $50,000, respectively. No penalty was imposed on the company's director of investor relations. The settlement will not have any significant impact on the company's financial condition or results of operations.
The company is pleased to bring this matter to a close so it can turn its full attention to business going forward. The company and its officers and directors continue their commitment to the objective of Regulation FD -- full and fair disclosure to all members of the investing public.
Flowserve Corp. (www.flowserve.com), of Irving, Texas, is one of the world's leading providers of fluid motion and control products and services. Operating in 56 countries, the company produces engineered and industrial pumps, seals and valves as well as a range of related flow management services.