Failure to Provide “Equal Prominence” When Using Non-GAAP Measures Results in Fine

The Securities and Exchange Commission (SEC) recently demonstrated that it is willing to use its regulatory power against registrants that improperly use Generally Accepted Accounting Principles (GAAP) and non-GAAP financial measures in public disclosures. Here, we provide insight into a recent SEC enforcement action against a registrant’s use of non-GAAP financial measures, including expectations and filing requirements surrounding such measures.