The U.S. Securities and Exchange Commission said it has settled charges against
Cheesecake Factory, which didn’t admit findings in the order, will pay a $125,000 penalty and will cease and desist from further violations of federal securities laws, the SEC said Friday in a
According to the SEC’s order, Cheesecake Factory said in filings March 23 and April 3 that its restaurants were “operating sustainably,” while failing to disclose that the company was losing approximately $6 million in cash per week and had just 16 weeks of cash remaining. The company shared the information with private equity investors or lenders in an effort to seek additional liquidity, the SEC said.
The SEC action is the first charging of a public company for misleading investors over the pandemic’s financial impact, the agency said.
Cheesecake Factory’s shares were little changed at 11:07 a.m. in New York. They were up 1.5% this year through Thursday.
(Updates with company comment in second paragraph)
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