Surgalign reaches $2M settlement with SEC over misreported revenue

Surgalign reached a $2 million settlement with the U.S. Securities and Exchange Commission related to activities between 2015 and 2019, the devicemaker said Aug. 3.

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The settlement resolves an investigation that involved pulling sales forward from future quarters to address projected shortfalls in sales, according to a news release. Along with the payment, the company agreed to refrain from future SEC violations. 

Surgalign is expected to receive $600,000 from former executives related to recouped compensation. 

“This investigation and the settlement reached stems from the activities of RTI and former senior management, not our current team,” David Lyle, Surgalign CFO, said in the release. “Reaching this settlement with the SEC will allow us to move forward without this uncertainty and is one more issue resolved in our effort to transform the company since we divested the RTI OEM business roughly two years ago.”

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