- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Kyle Brasseur2023-03-15T13:57:00
Information technology services provider DXC Technology Company agreed to pay an $8 million penalty to settle Securities and Exchange Commission (SEC) charges it made material misstatements regarding its non-GAAP disclosures over a two-year period.
DXC, based in Virginia, violated the anti-fraud provisions of the Securities Act of 1933 and reporting provisions of federal securities law by materially increasing its non-GAAP net income through misclassifying transaction, separation, and integration-related (TSI) costs, the SEC alleged in a press release Tuesday. GAAP represents generally accepted accounting principles.
From the end of fiscal year 2018 through the third quarter of FY2020, DXC disclosed it excluded TSI costs from its non-GAAP measures. In doing so, the company was “misclassifying tens of millions of dollars of expenses as TSI costs and improperly excluding them in its reporting of non-GAAP measures,” the SEC stated in its order.
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