Christopher Black, the former CFO of American Commercial Lines, settled a Securities and Exchange Commission claim over an alleged violation of Regulation FD. Without admitting or denying the allegations, Black consented to pay a $25,000 penalty.
According to the SEC, Black, in his capacity as ACL’s investor relations contact and without telling anyone at the company, selectively disclosed material, non-public information regarding ACL’s second quarter 2007 earnings forecast to a limited number of analysts without simultaneously making the information available to the public.
In deciding not to bring an enforcement action against ACL, the SEC said the company “cultivated an environment of compliance” by providing training on Reg. FD and adopting controls to prevent violations. Black was solely responsible for the violation and the company took steps to self-report and fix the damage, officials said in a related filing.
The SEC, in a related administrative proceeding, credited Black for taking remedial action and cooperating with the probe. Black’s attorney, James Doty of Baker Botts, said his client is “happy to have this behind him and looks forward to getting on with his career.”
In a statement, ACL CEO Michael Ryan said, “We are pleased that the SEC has recognized the company's emphasis on corporate compliance and its strong commitment to a level playing field for all investors. Throughout the inquiry, we cooperated fully with the SEC, and we are pleased that it has concluded and the company can put this issue behind us.”--Ben Maiden