Marvell Technology Group to settle SEC charges around alleged 'pull-in' scheme for $5.5M
SEC Charges Silicon Valley-Based Issuer With Misleading Disclosure Violations Washington D.C., Sept. 16, 2019 — The Securities and Exchange Commission today announced that Marvell Technology Group, Ltd. will pay $5.5 million to settle charges that it misled investors when it engaged in an undisclosed revenue management scheme in order to meet publicly-issued revenue guidance. According to the SEC’s order, Marvell orchestrated a scheme to accelerate, or “pull-in,” sales to the current quarter that had been scheduled for future quarters. As stated in the order, the purpose of the pull-in sales, which took place during the fourth quarter of 2015 and first quarter of 2016, was to close the gap between actual and forecasted revenue and to meet publicly-issued revenue guidance. The pull-ins for these quarters amounted to $24 million and $64 million of the total quarterly revenues, or 5% and 16% of revenue in its key storage segment, respectively. According to ...