Conn’s has reached a settlement with the Securities and Exchange Commission. The settlement arises from the previously disclosed SEC investigation commenced in November 2014 into the company’s underwriting policies and bad debt provisions from July 31, 2012, to July 31, 2014.
In connection with the settlement process, the SEC filed a civil complaint and agreed judgment against the company and a former officer in the U.S. District Court for the Southern District of Texas. Without admitting or denying the allegations in the SEC’s complaint, the company consented to the entry of a final judgment pursuant to which it will pay a civil monetary penalty of $1.1 million to the SEC.
There will be no current period financial impact on the company’s results, as an accrual for this amount was previously established and expensed.
“The company resolved this historical investigation in order to focus on growing the business for our customers, employees and shareholders,” said Norm Miller, Conn’s chairman and CEO. “I am pleased to have this matter, in which no current Conn’s officers were involved, behind the company. We have transformed Conn’s since that time period, and I am excited by the numerous opportunities we have in front of us to create value for all of Conn’s stakeholders.”