Surgalign Reaches Settlement with Securities and Exchange Commission Over Prior Management Issues Between 2015 and 2019
DEERFIELD, Ill., Aug. 03, 2022 (GLOBE NEWSWIRE) — Surgalign Holdings, Inc., (NASDAQ: SRGA) entered into an agreement with the United States Securities and Exchange Commission (“SEC”) on August 3, 2022, concluding and resolving in its entirety the previously disclosed SEC investigation regarding activities that occurred between 2015 and 2019 by RTI Surgical Holdings, Inc., and RTI Surgical, Inc. and previous management. As noted in the SEC order, these activities included advancing sales of future quarters to address anticipated quarterly revenue shortfalls.
Under the terms of the settlement, the Company agreed to pay a civil penalty of US$2 million which was fully recorded during the fourth quarter of 2021. As part of the settlement, the Company also agreed to refrain from any future violation of specified clauses. provisions of federal securities laws and rules. In addition to the settlement, the Company is expected to receive $0.6 million from former executives related to clawback compensation.
The SEC acknowledged that in evaluating Surgalign’s settlement offer, it took into consideration its substantial cooperation with Commission staff throughout the investigation, including disclosing information about conduct that staff did not had not yet uncovered through its own investigation, conducting an internal investigation into this conduct and providing staff with regular and detailed updates on the internal investigation and key documents identified during this investigation.
“This investigation and the settlement reached stem from the activities of RTI and the former senior executive, and not from our current team. Reaching this deal with the SEC will allow us to move forward without this uncertainty and is one more resolved issue in our efforts to transform the business since we spun off the RTI OEM business about two years ago,” said said David Lyle, Chief Financial Officer of Surgalign. . “We believe we are now at the end of our transformation and are excited about the prospects for a return to growth in 2023 with new spine product offerings and the ramp-up of our HOLO surgical guidance system. Portal coupled with the expansion of our AI platform.”
About Surgalign Holdings, Inc.
Surgalign Holdings, Inc. is a global medical technology company committed to the promise of digital health to drive transformation in the surgical landscape. Uniquely aligned and resourced to advance the standard of care, the company develops technologies that physicians and other healthcare providers will turn to for what is truly possible for their patients. Surgalign is focused on developing solutions that predictably deliver superior clinical and economic outcomes. Surgalign markets its products in the United States and in more than 50 countries around the world through a growing network of leading independent distributors. Surgalign is headquartered in Deerfield, IL, with shopping, innovation and design centers in San Diego, California, Warsaw and Poznan, Poland, and Wurmlingen, Germany. Learn more at www.surgalign.com and connect on LinkedIn and Twitter.
This press release contains forward-looking statements based on management’s current expectations, estimates and projections regarding our products, our company and our industry, the beliefs of our management and certain assumptions made by our management. Words such as “anticipate”, “expect”, “intend”, “anticipate”, “believe”, “seek”, “estimate” and other variations of these words and similar expressions are intended to identify these forward-looking statements. These statements are not guarantees of future performance and are subject to risks and uncertainties, including the risks described in our public filings with the United States Securities and Exchange Commission (SEC). Our actual results may differ materially from the anticipated results reflected in these forward-looking statements. Copies of the Company’s filings with the SEC may be obtained by contacting the Company or the SEC or by visiting Surgalign’s website at www.surgalign.com or the SEC website at www.sec.gov.