Data-measurement firm Comscore settles fraud charges, will pay $5 million penalty

USA Today Finance 1 month ago

NEW YORK – Data-measurement firm Comscore has settled fraud charges with the Securities and Exchange Commission and will pay a $5 million penalty.

Its former CEO, Serge Matta, will also pay $700,000 and give Comscore back $2.1 million from his pay and sales of company stock. He is also barred from serving as an officer or director of a public company for a decade. Comscore and Matta did not admit or deny the SEC's charges.

The commission said Tuesday that Comscore fraudulently inflated its revenue by $50 million from February 2014 to February 2016, which helped it beat Wall Street analysts' sales estimates for seven quarters. That's an important measure for investors and can impact a company's stock price.

The SEC said Comscore, which tracks digital and TV audiences and movie theater ticket sales, overvalued deals where it provided data sets to other companies, allowing it to inflate its revenue. The agency said Matta then misled Comscore's accountants.

The agency said Comscore also made misleading public statements about how many customers it had in an attempt to show steady growth, when its customers were actually declining in number. It did this by changing the definition of what a customer was, without telling investors about the changes.

The SEC said Comscore misled investors as well regarding sales of a flagship product that measured ad campaigns, saying it grew when it actually fell.

Reston, Virginia-based Comscore said Tuesday that it has overhauled its board and management and has new internal control procedures in place.

Matta did not immediately reply to a message requesting comment sent to ICX Media, a media and tech data-tracking firm where he currently serves as CEO.

Comscore shares dropped 4.7% Tuesday.


Source link
Read also:
ABC News › Finance › 1 month ago
Data-measurement firm Comscore has settled fraud charges with the Securities and Exchange Commission and will pay a $5 million penalty
Business Insider › Entertainment › 1 month ago
Comscore, a major media analytics company, was charged with fraud under former CEO Serge Matta. The company's new leadership paid a $5 million penalty to settle the charges with the Securities and Exchange Commission. They neither confirmed nor denied...
NBC News › 1 month ago
Comscore has grappled with the SEC probe since March of 2016. The SEC said the company and its former CEO engaged "in a fraudulent scheme to overstate revenue by approximately $50 million."
The Wall Street Journal › 1 week ago
Media measurement firm Comscore has named board Vice Chairman Bill Livek as its new chief executive officer and executive vice chairman as it tries to move past a period of turmoil.
Reuters › Finance › 1 month ago
Comscore Inc <SCOR.O> and former Chief Executive Serge Matta agreed to pay a combined $5.7 million of fines to settle U.S. Securities and Exchange Commission charges they fraudulently schemed to overstate the marketing data company's revenue by $50
Chicago Tribune › Finance › 1 month ago
Nissan has agreed to pay $15 million and its former chairman Carlos Ghosn is paying $1 million to settle federal regulators' civil fraud charges of hiding from investors more than $140 million in compensation and retirement benefits for Ghosn.
ABC News › Finance › 1 month ago
Nissan has agreed to pay $15 million and its former chairman Carlos Ghosn is paying $1 million to settle federal regulators' civil fraud charges of hiding from investors more than $140 million in compensation and retirement benefits for Ghosn.
Chicago Tribune › Finance › 1 month ago
Nissan has agreed to pay $15 million and its former chairman Carlos Ghosn is paying $1 million to settle federal regulators' civil fraud charges of hiding from
Business Insider › Politics › 1 month ago
Rudy Giuliani, Trump's personal lawyer, was paid "hundreds of thousands of dollars" to work for Ukrainian-American Lev Parnas at his fraud prevention firm Fraud Guarantee, The New York Times reported on Thursday. Giuliani told The Times on Thursday...
Axios › Politics › 0 month ago
President Trump's personal lawyer Rudy Giuliani told Reuters Monday he was paid $500,000 in consultancy work for the fraud prevention firm Fraud Guarantee, co-founded by indicted Ukrainian-American businessman Lev Parnas. Why it matters: Parnas and...
Sign In

Sign in to follow sources and tags you love, and get personalized stories.

Continue with Google
OR