Healthcare Services Group to pay $6 mln SEC fine over inflated earnings

Healthcare Services

24/08/2021 14:20

Aug 24 (Reuters) - Healthcare Services Group Inc  HCSG.O 
agreed to pay a $6 million fine to settle U.S. Securities and
Exchange Commission civil charges over accounting and disclosure
violations that enabled it to report inflated quarterly earnings
that met Wall Street analyst forecasts.
    The SEC said on Tuesday that the provider of housekeeping,
dining, and other services to healthcare facilities had in 2014
and 2015 failed to timely accrue for and disclose contingencies
related to private litigation it faced.
    John Shea, the company's chief financial officer, will pay a
related $50,000 fine, the SEC said.
    

 (Reporting by Jonathan Stempel in New York)
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