Symmetry Medical Announces Resolution of SEC Investigation

Symmetry Medical, a leading global source of innovative medical device solutions, including surgical instruments, orthopedic implants and sterilization cases and trays, reached a settlement concluding an investigation resulting from the previously-reported informal inquiry that has been conducted by the U.S. Securities and Exchange Commission (SEC). In 2007 the SEC initiated the investigation related to matters arising from the discovery of certain accounting irregularities at the company’s Sheffield, UK operating unit in which certain former employees of that unit colluded to falsify records. The company discovered the irregularities in 2007 and the company’s Audit Committee self-reported the matter to the SEC at that time. The company has fully cooperated with the SEC’s inquiry throughout the process. There are no allegations of any issues related to the company’s financial reporting since 2007.

Under the settlement reached today, the company consented to an administrative cease-and-desist order to comply with relevant provisions of the securities laws. There is no fraud charge against the company, nor was any civil penalty or other financial obligation imposed on the company as a result of this settlement.

Simultaneous with the Company’s settlement, Brian Moore, the Company’s former Chief Executive Officer and current President of Business Development, and Fred Hite, the Company’s Chief Financial Officer, resolved claims under Section 304 of the Sarbanes-Oxley Act through the repayment of certain incentive-based compensation they earned between 2004 and 2007. Section 304 requires the repayment of, among other things, performance-based compensation earned during a time when the Company filed inaccurate financial statements, and does not reflect any allegations of wrongdoing on their part in connection with the inaccurate financial statements. Mr. Hite also agreed to the payment of a civil penalty stemming from internal control deficiencies. There was no allegation that Mr. Hite knew of or participated in any of the wrongdoing by the Sheffield employees.

Source: Symmetry Medical, Inc.

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