SEC Investigation Updates: June 13, 2025
Updates on SEC investigative activity - Four (4) companies
All-access clients are welcome to contact us anytime to learn more.
Today’s report -
A10 Networks, Inc. - ATEN
Chegg, Inc. - CHGG
Cognizant Technology Solutions Corp. - CTSH
Inter Parfums, Inc. - IPAR
Click on the PDF here to access a printable version of this report.
COMPANY COMMENTS
A10 Networks, Inc. – ATEN
Warning Reiterated. SEC investigation again confirmed as ongoing. Early signal of a possible SEC investigation received on 19-Mar-2024. Enforcement proceedings confirmed as ongoing three times since, most recently on 24-Apr-2025. We have meta data and over 700 pages of analytically-rich records from earlier SEC investigative activity, including a matter that ended in Sep-2019. Disclosure Games® repeatedly found when A10 disclosed that SEC investigation.
Notable Item: In the 10-K filed on 07-Feb-2023, a cyber intrusion was first disclosed. This from the company who’s tagline is, “Always Secure. Always Available.” It could also be what the SEC’s investigating. Maintained on DI Watch List.
Chegg, Inc. – CHGG
Warning Reiterated. SEC investigation again confirmed as ongoing. Early signal of undisclosed SEC investigative activity first found on 08-Nov-2023. Enforcement proceedings confirmed as ongoing two times since, most recently on 13-May-2025. No clear disclosure of SEC investigative activity found in a search of SEC filings back to the 10-Q filed 01-Nov-2021. This remains the first sign of an SEC investigation we found since we started covering Chegg in Dec-2016. Maintained on DI Watch List.
Cognizant Technology Solutions Corp. – CTSH
Warning Reiterated. SEC investigation again confirmed as ongoing. Early signal of undisclosed SEC investigative activity first found on 11-May-2017. Enforcement proceedings now confirmed as ongoing eleven times since that first early signal way back in 2017, most recently on 13-May-2025. There has been no new SEC activity disclosed since an earlier FCPA investigation resolved in Feb-2019. More than enough time has now passed for us to think the SEC is investigating something else. Maintained on DI Watch List.
Inter Parfums, Inc. – IPAR
Undisclosed SEC investigation appears over. Removed from Watch List. Early signal of a possible SEC investigation received on 26-Jun-2024. Signal was then confirmed as an ongoing investigation on 19-Aug-2024.
Latest signal, dated 26-Feb-2025, suggested an SEC probe was ongoing. However, an appeal response dated 13-May-2025, now suggests SEC investigative activity involving this company is over. File(s) remanded for additional processing and potential release of records. If we learn more, we’ll let you know.
Watch for the lingering internal controls problems: In early March 2025, the Inter Parfums 10-K was delayed due to internal controls issues. It was then filed on 11-Mar-2025, but the 10-Q filed on 05-May-2025 cautions that, “our material weaknesses will not be considered remediated until the controls operate for a sufficient period of time and management has concluded, through testing, that the related controls are operating effectively.”
Here is a summary of the internal controls issues, as disclosed in that NT 10-K filed on 03-March-2025:
The Company, in discussion with Forvis Mazars, LLP, has determined that material weaknesses exist with regard to risk assessment, control activities, information technology general controls (ITGCs), and monitoring of its financial reporting.
-- John P. Gavin, CFA, NACD.DC
This report does not constitute investment advice or an offering to buy, sell or recommend any securities. The information herein is distributed purely as a newsworthy event. All information contained herein is derived from publicly-available disclosures as made by the companies cited in this report, and/or documents obtained from the U.S. Securities and Exchange Commission.
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