A Litigation Service Provider (LSP) has agreed to pay $3,871,873 to settle charges that it violated securities law, according to an SEC filing.LSP is the second-largest settlement with the SEC.
It was initially approved by the agency in July, and was approved again in October.
SEC Chairman Mary Jo White announced the settlement on November 4, saying that the SEC’s Litigation Litigation Team, which she created in April, had worked hard to address issues raised by SEC staff and clients.
“Our commitment to transparency and compliance has been a cornerstone of the SEC for decades,” said LSP CEO Andrew Miller in a statement.
“The settlement resolves the issue of potential violations of the Securities Exchange Act and its implementing rules related to our SEC staff.
It also provides us with a critical tool in our ongoing efforts to ensure that the company and its employees comply with applicable SEC rules and regulations.”
In its initial settlement, LSP agreed to “take corrective actions to ensure compliance with applicable law and regulations,” including: “a review of the company’s internal procedures, policies and processes relating to the selection of its attorneys and other employees to work on SEC matters”; “reviewing and revising the company policies, procedures and practices regarding the handling of customer complaints, investigations and actions relating to matters of material concern to the Company”; and “providing written information to the SEC and the public to assist in the prompt, thorough and efficient investigation of any claims or allegations relating to any violation of the securities laws or regulations.”
The SEC’s case against LSP involved allegations that it improperly handled customer complaints about its handling of complaints about defective vehicles.
The SEC initially filed a civil lawsuit in March 2016 against LMP alleging breach of the federal securities laws.
In November, the SEC announced that it had settled its case with LSP and will be investigating the allegations in a separate case.
The SEC’s announcement said the settlement “resolved the issue and caused a reduction in the company.”
The settlement comes at a time of heightened scrutiny over the SEC in light of allegations that the agency failed to act promptly in its investigation of allegations of misconduct by SEC employees.
Last month, the Senate Banking Committee voted to hold the SEC accountable for failing to protect consumers, including the millions of Americans who are eligible for the refundable federal tax credit for the purchase of consumer-owned cars.