11 Dec

Southpeak Games has announced that it has taken steps to clear up some of its financial reporting in response to the suit brought against them by the US Securities and Exchange Commission. The initial investigation stemmed from Southpeak’s earlier failure to report a loan taken out by company chairman Terry Phillips in 2009.

“During the investigation, we fully explained to the SEC staff that when we discovered the error in our statements, we acted promptly on our own accord with the support of our auditor and outside counsel to fully rectify the issue,” read SouthPeak’s statement. “We are currently negotiating the exact provisions of the orders,” adds the statement. “The SEC is not proposing that our company be prohibited from doing business as some are saying…As we mature as a public company, we have taken great pains to install better internal controls and procedures to further assure our adherence with financial reporting obligations.”