Flowserve Reaches Settlement with Securities Regulators

Industrial equipment manufacturer, Flowserve has reached a settlement with the SEC to dispense with what the securities regulators have alleged were improperly disclosed earnings forcasts from 2002.

Via Reuters:

Flowserve settles SEC disclosure charges

Thu Mar 24, 2005 02:14 PM EST

WASHINGTON, March 24 (Reuters) - Flowserve Corp. (FLS.N: Quote, Profile, Research) and its chief executive agreed to pay a total of $400,000 to settle charges the company failed to properly disclose 2002 earnings forecasts, government regulators said on Thursday.

The U.S. Securities and Exchange Commission alleged that Flowserve Chief Executive Officer C. Scott Greer reaffirmed earnings forecasts to analysts before providing that information publicly, according to an SEC statement.

The SEC also settled disclosure charges with Flowserve Director of Investor Relations Michael Conley, who the commission said did nothing to prevent Greer from violating the disclosure rule.

Flowserve has agreed to pay a $350,000 fine while Greer has agreed to pay $50,000. Both Greer and Conley agreed to a cease-and-desist order for the charges of violating the rule known as Regulation FD, the SEC said.

Read the rest here.

-- MDT