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Synchronoss Technologies Announces Settlement of Previously Disclosed Securities and Exchange Commission Matter

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Synchronoss Technologies (Nasdaq: SNCR) has resolved its legacy investigation by the SEC regarding financial data restatements from 2013 to 2016. The company will pay a civil penalty of $12.5 million in quarterly installments over two years, an expense already accrued in its financial statements. CEO Jeff Miller expressed satisfaction with the settlement, viewing it as beneficial for shareholders and stakeholders, and highlighted a continued focus on strategic growth initiatives.

Positive
  • Resolution of SEC investigation is finalized, allowing management to focus on growth.
  • The penalty expense has already been accounted for, minimizing immediate financial impact.
Negative
  • A civil penalty of $12.5 million indicates prior financial mismanagement concerns.

BRIDGEWATER, N.J., June 07, 2022 (GLOBE NEWSWIRE) -- Synchronoss Technologies, Inc. (“Synchronoss” or the “Company”) (Nasdaq: SNCR), a global leader and innovator in cloud, messaging and digital products and platforms, today announced the successful resolution of the legacy investigation by the U.S. Securities and Exchange Commission (“SEC”) regarding the Company’s restatement of selected financial data from 2013 to 2016. In 2018, the Company restated the transactions at issue in that investigation. In connection with the settlement, the Company neither admitted nor denied the SEC’s allegations.

Under the terms of the settlement between Synchronoss and the SEC, Synchronoss has agreed to pay a civil penalty in the amount of $12.5 million in equal quarterly installments over two years. The expense associated with this settlement has previously been accrued in the Company’s financial statements.

“We are pleased to have entered into this settlement with the SEC regarding this legacy matter and look forward to continuing to place our focus on the Company’s strategic growth initiatives,” said Jeff Miller, President and Chief Executive Officer of Synchronoss.

“This matter relates to historical transactions that the Company restated almost four years ago, and Synchronoss believes that reaching this resolution now is the right outcome for our shareholders, customers and key stakeholders.”

About Synchronoss
Synchronoss Technologies, Inc. (Nasdaq: SNCR) builds software that empowers companies around the world to connect with their subscribers in trusted and meaningful ways. The company’s collection of products helps streamline networks, simplify onboarding, and engage subscribers to unleash new revenue streams, reduce costs and increase speed to market. Hundreds of millions of subscribers trust Synchronoss products to stay in sync with the people, services, and content they love. That’s why more than 1,500 talented Synchronoss employees worldwide strive each day to reimagine a world in sync. Learn more at www.synchronoss.com.

Media Relations Contact:
Domenick Cilea
Springboard
dcilea@springboardpr.com

Investor Relations Contact:
Matt Glover and Tom Colton
Gateway Group, Inc.
SNCR@gatewayir.com


FAQ

What is the SEC investigation resolution for SNCR?

Synchronoss Technologies resolved its SEC investigation concerning financial data restatements from 2013 to 2016.

How much will Synchronoss pay in civil penalties?

Synchronoss will pay a civil penalty of $12.5 million in quarterly installments over two years.

What impact does the SEC settlement have on SNCR's business?

The settlement allows Synchronoss to refocus on strategic growth initiatives without the burden of ongoing investigations.

When did Synchronoss announce the SEC investigation settlement?

Synchronoss announced the resolution of the SEC investigation on June 7, 2022.

What financial data was involved in the SEC investigation of SNCR?

The SEC investigation involved restatements of selected financial data from the years 2013 to 2016.

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