Key Takeaways From the SEC’s Settled Charges Against BMW – the SEC Continues Its Efforts to Police Corporate Bond Disclosures and Accords Special Credit to Cooperation Efforts During the Pandemic
On September 24, 2020, the Securities and Exchange Commission announced a settled case against BMW AG (“BMW”) and two of its U.S. subsidiaries for inaccurate disclosures concerning BMW’s retail sales volume in the United States, while the company raised approximately $18 billion from U.S. investors in various bond offerings.
The SEC’s order against BMW is noteworthy for at least two reasons. First, it reflects the SEC’s continued focus on bond offering disclosures, even in the absence of findings or allegations that proper disclosures would have impaired the ability of the company to make interest payments or repay principal to bondholders. Second, it demonstrates that the SEC is prepared to accord special credit for a respondent’s cooperation in the midst of the challenges posed by the global COVID-19 pandemic.