Shedding Light on Its New Cooperation Initiative, the SEC Announces Its First Non-Prosecution Agreement with a Public Company
When it filed securities fraud charges two weeks ago against a former executive of Carter’s, Inc. (“Carter’s”), the children’s clothing company, the SEC also announced its first ever non-prosecution agreement between it and a public company. The agreement was entered pursuant to the initiative the SEC unveiled last year to encourage and reward cooperation with SEC investigations and enforcement actions. The agreement provides the first glimpse into how the SEC will implement an initiative that received widespread attention when it was launched but whose details had been somewhat unknown.