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RSM to Pay $3.75 Million for Revolution Lighting Misstatement (1)

Sept. 30, 2022, 4:25 PMUpdated: Sept. 30, 2022, 5:12 PM

RSM US LLP agreed to pay $3.75 million to settle SEC charges that it ignored red flags about Revolution Lighting Technologies Inc.'s revenue accounting and didn’t consider the errors to be material to investors.

The firm incorrectly determined that four years of revenue inflation by its client did not require a restatement, according to a settlement order the Securities and Exchange Commission released Friday.

“The failure to restate effectively hid from investors Revolution’s four years of improperly recognized revenue,” the order says.

Revolution Lighting settled a revenue accounting suit with the SEC in 2020.

“The SEC did ...