DI Early Signals Report - September 10, 2024
US Companies with Possible SEC Investigations
Early Signals™ in this report are only POSSIBLE indicators of SEC investigative activity.
They are instances wherein the SEC cited the "law enforcement exemption" of the Freedom of Information Act (FOIA) as basis to block our access to records we sought on the public companies included in this update.
As a matter of law, the SEC is acknowledging some sort of investigative activity with this response. We call this an early signal of an SEC investigation. However, these signals have not yet been confirmed through the administrative appeal process.
What’s an Early Signal?
DI’s EARLY SIGNALS are only POSSIBLE indicators of SEC investigative activity. We are publishing these data to give you the earliest indication of the existence of a possible SEC investigation.
That is why we use the term “possible” in describing SEC investigations at this point in our research process. We will only describe an investigation “confirmed” after we file an administrative appeal and have received a response that says as much.
Important: The SEC reminds us that its assertion of the law enforcement exemption should not be construed as an indication by the Commission or its staff that any violations of law have occurred with respect to any person, entity, or security. In its responses, the SEC did not disclose the details on investigative activity referenced herein. All we know is that they somehow pertain to the conduct, transactions, and/or disclosures of the companies.
The data we present here is recently received. New SEC investigative activity could theoretically begin or end after the date covered by the latest information in this report, which would not be reflected here. Unless we indicate otherwise, we will continue the research process on these companies and may publish updates at any time.
The FOIA data reflected in this report are only current as of the dates indicated for each individual company. Similarly, public company activities and/or disclosures made since the dates indicated herein could impact your analysis.
Only companies with confirmed, undisclosed SEC investigations are maintained on our Watch List of companies with undisclosed SEC investigations. If SEC investigative activity has already been disclosed by a company as we go to print, we will endeavor to tell you as much. Further, we may have researched and published on some of these companies in the past. It’s also possible some of the companies are already on our Watch List of companies with Confirmed, Undisclosed SEC Investigations. An update to our Watch List report is published at the beginning of each month.
There are several reasons the SEC might cite the law enforcement exemption as basis to block our access to records. Not all would be of concern to investors today.
After we receive an Early Signal of a possible SEC investigation, we then file an administrative appeal with the Office of the General Counsel of the SEC on the company in question. After careful review of our appeal, the General Counsel’s office typically informs us of one of the following:
1. An ongoing enforcement proceeding is confirmed. Only then will we use the term “confirmed” next to the company’s name on our Watch List.
2. There was an investigation that is now over and the file has been remanded for further processing. We may learn more about what took place if the SEC provides documents to us.
3. There are no records responsive to our request. This could be because there was an investigation that concluded in the past but the SEC’s records were not current at the time of our request. Alternatively, there may be an investigation involving not the company, but some other person or entity and the company was incidentally named or tangentially listed.
4. Rarely, the appeal response will inform us a clerical error was made by the SEC’s FOIA Office in processing our original request.
Clients are welcome to contact us anytime to learn more.
Disclosure Insight research provides data, commentary, and analysis on public company interactions with investors and with the SEC. Our work is heavily reliant on company disclosures and our expertise in using the Freedom of Information Act.
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