SEC No-Penalty Settlement Signals Heightened Focus on Self-Reporting and Cooperation

On September 25, 2023, the Securities and Exchange Commission announced settled cease-and-desist charges against GTT Communications, Inc., a formerly publicly-traded multinational telecommunications and internet service provider company.

The SEC charged GTT with failing to disclose material information regarding unsupported accounting adjustments, which caused the company’s statements to be misleading with respect to its cost of revenue.  

According to the SEC’s order, GTT did not face a civil penalty because of its prompt self-reporting, substantial cooperation, and voluntary affirmative remedial measures.  This action is consist with the SEC’s messaging on cooperation as a mitigation tool in avoiding or lessening penalties.

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