SEC Investigation *Alerts*
Risk events/updates on companies with SEC investigations: May 20, 2025
This is a new report format. We will use this “Alerts” format to warn you about events and updates that, in our opinion, raise the risk on companies where we previously found possible or confirmed, undisclosed SEC investigations.
Today’s report includes alerts typical of those you can expect going forward —
Two companies with general counsel departures on short or no-notice;
Delayed filing on a company we warned had tried to bury an SEC investigation in Forward Looking Statements;
Auditor change; and,
A recent deal that could be impacted by undisclosed SEC investigative activity at both companies.
All-access clients are welcome to contact us anytime to learn more.
Click on the PDF here to access a printable version of this report.
Arista Networks, Inc. – ANET
Event: Abrupt departure of the general counsel
Per Arista Networks 8-K filed 06-May-2025: On 01-May-2025, Marc Taxay, Arista’s General Counsel, notified the company of his intention to resign effective 07-May-2025.
Arista gave us the fluff-and-spin that the general counsel’s decision to leave was not the result of any disagreement with the company, and they wished him well. No explanation otherwise given for the sudden departure.
The abrupt departure of a C-Suite executive, especially in the presence of an undisclosed SEC investigation is a red flag.
Arista Networks is on the DI Watch List. We’ve been tracking an undisclosed SEC investigation at the company since 27-Aug-2024, last confirmed as an ongoing investigation on 18-Dec-2024.
DICK’S Sporting Goods – DKS
Foot Locker, Inc. – FL
Event: Confirmed, undisclosed SEC investigation at Foot Locker, and a possible SEC investigation at DICK’S Sporting Goods adds risk to the recently announced deal.
On 15-May-2025, DICK'S Sporting Goods announced its planned acquisition of Foot Locker. The deal is expected to close in the second half of 2025.
Footlocker is on the DI Watch List. We have been tracking an undisclosed SEC investigation at Foot Locker since 12-Feb-2024, confirmed as ongoing on 29-May-2024. Our latest signal on Foot Locker, dated 06-Jan-2025, suggests that SEC probe was still ongoing. We are awaiting confirmation of this latest signal.
Early signal of a possible SEC investigation at DICK’s received on 16-Apr-2025. We are awaiting confirmation of this signal.
New Fortress Energy, Inc. – NFE
Event: 10-Q now delayed, including resignation of Chief Accounting Officer, a month after we warned New Fortress was trying to hide an SEC investigation.
On 10-Apr-2025, at $6.68 / share, we published a warning on New Fortress Energy, calling it a company playing Disclosure Games® for trying to bury an SEC investigation within forward-looking statements.
Now the 10-Q is delayed. The NT 10-Q was filed on 13-May-2025. The company partially blamed this on the resignation of the Chief Accounting Officer, effective 29-Apr-2025.
Further, that stealth language that was warned about earlier – below – is now missing from the Forward Looking Statements.
The missing language –
SEC investigation as previously cited in Forward Looking Statements, 8-K filed on 27-Mar-2025:
Specific factors that could cause actual results or events to differ from those in the forward-looking statements include, but are not limited to … the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks, including the impact of SEC and other investigative and legal proceedings.
New Fortress Energy is on the DI Watch List. We’ve been tracking an undisclosed SEC investigation at the company since 11-Dec-2024, last confirmed as ongoing investigation on 06-Mar-2025.
Quanterix Corp. – QTRX
Event: Auditor Change
On 09-May-2025, Quanterix appointed KPMG to replace Ernst & Young.
Wide array of problems found, back to 2022, including internal controls issues and C-suite turnover. The board chair resigned abruptly on 24-Mar-2025, after failure to receive enough votes at the annual meeting.
Now an auditor change. Maybe the board, such as it is, grew tired of those adverse opinions the former auditor kept issuing.
Quanterix is on the DI Watch List. We’ve been tracking an undisclosed SEC investigation at the company since 17-May-2024, last confirmed as ongoing investigation on 16-Aug-2024. New research in-process as of Feb-2025.
Roku Inc. – ROKU
Event: Departure of the general counsel on short notice
Per 8-K filed 07-May-2025: On 01-May-2025, Louise Pentland, General Counsel of Roku, notified the company of her decision to resign, effective 16-May-2025. The company said she’s leaving “to pursue another opportunity."
The departure of a C-Suite executive, especially in the presence of an undisclosed SEC investigation, is a red flag. The only way this one could be worse is if the departure was abrupt, as in same-day, with no reason given.
Roku is on the DI Watch List. We’ve been tracking an undisclosed SEC investigation at the company since 09-Dec-2024, last confirmed as an ongoing investigation on 06-Mar-2025.
-- John P. Gavin, CFA, NACD.DC