The United States Securities and Exchange Commission filed charges of misfiling crucial loan documents against SouthPeak Interactive (Two Worlds II) back in November, or, more specifically, the publisher’s chairman Terry Phillips. No word had been given once charges were filed, but SouthPeak has ended the matter relatively quickly, settling out of court for an undisclosed amount.
“We determined to settle the investigation in order to move forward with our business without further distraction from the investigation,” said Melanie Mroz, SouthPeak’s CEO, “We are fully cognizant that the need to restate our March 31, 2009 financial statements resulted from inadequate controls and procedures that have since been corrected…In the end, however, it made the most sense for the company and Terry to negotiate an acceptable settlement that does not require us to admit any wrong-doing and close this chapter as we constantly strive to improve our processes, systems and personnel to meet our obligations as a public company.”