Calumet Announces Resolution in SEC Investigation
INDIANAPOLIS - Indianapolis-based Calumet Specialty Products Partners LP (Nasdaq: CLMT) says it has reached a resolution with the Securities and Exchange Commission. The commission had been investigating the company following errors and delays in its reporting of earnings results in 2017.
Calumet said in 2017 that a transition to its new enterprise resource planning (ERP) system had resulted in "operating and reporting disruptions." The company's third quarter earnings report was released seven weeks late, which led to a notice of non-compliance from the Nasdaq.
According to SEC documents, Calumet released its full-year 2017 earnings report in March 2018, which "materially misstated, among other things, the company's earnings for 2017." The company released a revised report the following month and the SEC said the differences between the two reports were "directly related to problems resulting from Calumet's ERP implementation."
As part of the resolution, Calumet has agreed to pay a fine of $250,000 to the SEC.
"We are pleased that the investigation has concluded regarding the Company's disclosures and procedures," said Tim Go, chief executive officer of Calumet Specialty Products Partners. "With this matter now behind us, we can focus all of our efforts on continuing our transformation, growing our core Specialty business and enhancing value for our partners and unitholders."
You can view the full resolution order from the SEC by clicking here.
Calumet is a producer of specialty hydrocarbon products, including customized lubricating oils, solvents and waxes, as well as fuel products such as gasoline, diesel and jet fuel.