Terex Corp. last week reported that the previously announced agreement in principle it has reached with the staff of the United States Securities and Exchange Commission, has now been approved. This agreement is subject to court approval, and will become final upon entry by the court of a final decree.
The settlement concludes the SEC’s investigation of Terex related mainly to (1) certain transactions between Terex and United Rentals that took place in 2000 and 2001, and one transaction between United Rentals and one of Terex’s subsidiaries that took place in 2001 before that subsidiary was acquired by Terex, and (2) the circumstances of the restatement of certain of Terex’s financial statements for the years 2000-2004.
Under the terms of the settlement, Terex consented, without admitting or denying the SEC’s allegations, to the entry of a judgment , which enjoins Terex from committing or aiding and abetting any future violations of the anti-fraud, books and records, reporting and internal control provisions of the federal securities laws and related SEC rules. Terex is also required to pay a civil penalty of $8 million for which Terex recorded a charge in its quarter ended June 30. The settlement resolves all matters relating to the potential liability of Terex, but does not address current or former employees of Terex.
Westport, Conn.-based Terex Corp. is a diversified global manufacturer with 2008 net sales of $9.9 billion. Terex operates in four business segments: Terex Aerial Work Platforms, Terex Construction, Terex Cranes, and Terex Materials Processing & Mining.