Charter Communications Agrees To $25M Settlement With SEC For Stock Buyback Violations
Portfolio Pulse from Akanksha Bakshi
Charter Communications Inc. (NASDAQ:CHTR) has agreed to a $25M settlement with the SEC for violations related to stock buyback accounting controls. From 2017 to 2021, Charter used 'accordion' provisions in their buyback plans, allowing changes in buyback amounts and timing, which did not comply with SEC Rule 10b5-1. The SEC found Charter's actions resulted from inadequate internal accounting controls, violating Section 13(b)(2)(B) of the Exchange Act. Charter has accepted the cease-and-desist order and fine without admitting or denying the findings. The company's shares dropped 2.03% in premarket trading.

November 15, 2023 | 1:32 pm
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Charter Communications Inc. settled with the SEC for $25M due to stock buyback violations, leading to a 2.03% drop in premarket trading.
The settlement indicates a significant regulatory issue and financial penalty, which typically results in negative investor sentiment and can lead to a short-term decline in stock price. The premarket trading already shows a negative reaction, which supports the likelihood of a short-term negative impact.
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