* Schawk says cooperating with SEC's Wells notice
* SEC had been inquiring into 2008 restatement
* Schawk shares fall as much as 8.9 pct
NEW YORK, May 23 Schawk Inc SGK.N, a provider
of digital imaging graphic services, said it may face U.S.
Securities and Exchange Commission civil charges relating to a
2008 restatement, and its shares fell as much as 8.9 percent.
The company said it received a "Wells notice" from the SEC
on May 17 concerning alleged securities law violations
pertaining to the maintenance of accurate books and records and
adequate internal accounting controls.
Schawk did not immediately return a call seeking an
A Wells notice indicates that the SEC may bring civil
charges, and gives the recipient a chance to mount a defense.
The Des Plaines, Illinois-based company disclosed the Wells
notice in a filing late Friday with the SEC.
Schawk in April 2008 restated financial results for 2005,
2006 and the first three quarters of 2007, reducing earnings
for several of the affected periods.
The restatement corrected accounting errors including how
Schawk recognized revenue and capitalized software development
costs. Schawk also said it had found material weaknesses in its
internal controls. Shares of Schawk fell 5.8 percent on the day
after the company announced plans for the restatement.
In Friday's filing, Schawk said it had previously disclosed
that the SEC had been examining issues surrounding the
restatement. It said it has been and intends to continue
cooperating with the regulator.
Schawk's shares fell $1.34, or 7.7 percent, to $16.16 in
morning trading, after earlier falling to $15.95.
(Reporting by Jonathan Stempel in New York, editing by Maureen