SouthPeak settles in SEC violation dispute
Two Worlds publisher SouthPeak Interactive ended up in some hot water with the U.S. Securities and Exchange Commission last November, when the government agency announced it would bring a civil injunction against the publisher's chairman, Terry Phillips. The reason for the SEC suit was SouthPeak's failure to properly document a loan given to the publisher by Phillips in early 2009. Rather than drag out the investigation, SouthPeak decided to settle with the SEC earlier this week on unspecified terms.
SouthPeak CEO Melanie Mroz explained in a statement that the publisher cooperated with the SEC since it brought the investigation before them last year. She added, "In the end, however, it made the most sense for the company and Terry to negotiate an acceptable settlement that does not require us to admit any wrong-doing and close this chapter as we constantly strive to improve our processes, systems and personnel to meet our obligations as a public company."
