SEC Charges Dental Supply Company with Disclosure Failures
Dec. 16, 2020
File No. 3-20170
December 16, 2020 - The Securities and Exchange Commission announced settled charges against North Carolina-based dental supply company Denstply Sirona Inc. for failing to make certain required disclosures in periodic reports filed with the SEC.
According to the SEC's order, in each of the first three quarters of 2016 Denstply knew that it had sold more of its dental technologies equipment to its exclusive U.S. distributor than the distributor could sell to retail purchasers, resulting in excess inventory in its exclusive U.S. distribution channel. The order finds that during this period, retail demand for certain of Dentsply's technology products was not keeping pace with the exclusive distributor's purchases. The order further finds that Dentsply knew these trends or uncertainties were reasonably likely to have a material unfavorable impact on net sales or revenues in future periods, but did not disclose these known trends and uncertainties to investors in its quarterly filings.
The SEC's order finds that Dentsply violated the reporting provisions of Section 13(a) of the Securities Exchange Act of 1934 and Rules 12b-20 and 13a-13 thereunder. Without admitting or denying the findings in the order, Dentsply agreed to cease-and-desist from violations of the charged provisions and to pay a $1 million civil penalty.
The SEC's investigation was conducted by Adam S. Ross and Michael F. D'Angelo, and was supervised by Mary S. Brady and Jason J. Burt of the SEC's Denver office.