U.S. Securities and Exchange Commission
Litigation Release No. 21948 / April 26, 2011
Securities and Exchange Commission v. J. Kenneth Stringer III, et al., Civil Action No. CV 02-1341 ST District of Oregon.
COURT ENTERS FINAL JUDGMENT AGAINST FLIR SYSTEMS, INC. FORMER CEO
The U.S. Securities and Exchange Commission announced today that on April14, 2011, the United States District Court for the District of Oregon entered a Final Judgment against J. Kenneth Stringer III in a pending civil action. The Final Judgment enjoins Stringer from violations of Sections 17(a)(2) and (a)(3) of the Securities Act of 1933 and Rules 13b2-1 and 13b2-2 of the Securities Exchange Act of 1934. In addition, the Court ordered Stringer to pay a civil penalty of $90,000 and permanently barred him from serving as an officer or director of a reporting company.
The Commission filed its complaint against Stringer on September 30, 2002; however, that litigation was stayed until September 3, 2010, following the resolution of the criminal action against Stringer. According to the Commission's Complaint, FLIR Systems Inc.'s year-end 1998 and quarterly 1999 earnings releases, periodic filings, and registration statements materially overstated earnings. The Complaint alleges that FLIR's misstatements were the result of numerous improper revenue recognition practices carried out by Stringer and other FLIR executives. The Commission also alleged that Stringer signed a false management representation letter to FLIR's independent auditor during the 1998 audit. The entry of Final Judgment against Stringer concludes this litigation.