May 22, 2024

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Former Hertz CEO Settles SEC Charges

The former main govt officer of Hertz, Mark Frissora, has agreed to spend $2.18 million to settle fees from the U.S. Securities and Trade Commission that he aided and abetted the company’s submitting of inaccurate economic statements and disclosures.

Mark Frissora

In a statement, the SEC reported Frissora pressured subordinates to “find money” that created the company’s economic stories materially inaccurate, artificially lowered depreciation expenses with no adequately disclosing pitfalls, and authorized the company’s decision to reaffirm earnings steerage in November 2013, despite interior calculations that projected lessen figures.

“Investors are entitled to exact and dependable disclosures of content facts about a company’s economic ailment,” Marc Berger, director of the SEC’s New York Regional Place of work, reported. “We are committed to holding company executives accountable when their steps deprive buyers of such facts.”

Frissora agreed to spend a $200,000 civil fine to the SEC and to repay $1.ninety eight million in incentive-based compensation to Hertz, according to settlement papers submitted in federal court docket in Newark, New Jersey.

He neither admitted nor denied wrongdoing.

Hertz revised its economic benefits in 2014 and restated them in July 2015, lowering its formerly reported pretax profits by $235 million, the SEC reported.

Last calendar year, Hertz agreed to spend $16 million to settle with the SEC about the economic reporting failures. In March 2019, the company sued Frissora, former main economic officer Elyse Douglas, and former Typical Counsel Jeffrey Zimmerman trying to find to recoup approximately  $70 million in incentive compensation they been given as a result of inflated profits reported for its 2011,  2012, and  2013  fiscal years.

The company also cited the “lengthy and costly” SEC investigation and requested the court docket to assess the former executives for damages induced by the violations.

Frissora still left the company in 2014 under force from activist buyers.

Hertz submitted for individual bankruptcy safety this Might, citing the COVID-19 pandemic.

The settlement necessitates a judge’s approval.

Ethan Miller/Getty Photos

economic misreporting, Hertz, Mark Frissora, The Securities and Trade Commission