23:13 PM | September 26, 2019 | Robert Westervelt
The Securities and Exchange Commission (SEC) has accepted a settlement offer submitted by PPG Industries to resolve concerns related to accounting violations from December 2016 through April 2018. SEC said the settlement does not impose a civil penalty, citing PPG’s “substantial cooperation in [the] investigation and related enforcement action.” PPG also announced that the US Attorney’s Office for the Western District of Pennsylvania has informed the company that it will not pursue action under an investigation into the same accounting matters.
PPG previously reported the accounting issues in April 2018 and filed an amended annual financial reports on 22 June 2018. PPG’s restatement disclosed 14 instances of accounting misconduct during the period that reduced previously reported GAAP pretax income from continuing operations by a cumulative $6 million for 2016 and 2017. The investigation also identified a material weakness in PPG’s internal control over financial reporting.
“We are pleased to have resolved this matter with both the SEC and [DOJ] without any financial or other penalty,” said Michael McGarry, PPG chairman and CEO. “As we move forward, our focus remains on our unwavering adherence to our core standards including financial integrity.”