Advice on SEC Requirements Leads Oil and Gas Service Company to Favorable Settlement

Background & Challenges

A publicly traded, multinational oil and gas service company and its officers were defendants in a securities litigation matter related to several restatements stemming from the effectiveness of the company’s internal controls over accounting and financial reporting for income taxes.

Approach

BDO served as witnesses on behalf of an officer of the company and advised counsel on the requirements of Section 10A of the Securities and Exchange Act of 1934 in light of restatements made to the company’s financial statements and actions taken by the company to remediate material weaknesses in their internal controls. A BDO partner submitted a report.

Client Impact

After the issuance of BDO’s report, the company entered into a favorable settlement with the plaintiffs.