Westlaw News

Dentistry supplier pays SEC $1 mln over failure to disclose inventory glut

Dental technology supplier Dentsply Sirona Inc has agreed to pay the U.S. Securities and Exchange Commission a $1 million fine to settle allegations that it failed to disclose a buildup of excess inventory at its exclusive distributor in the United States that contributed to the company taking a $1.2 billion write-down in 2017.

In the settlement released on Wednesday, the SEC alleged the Charlotte, North Carolina-headquartered company knew in early 2016 but did not tell investors that sales growth had been driven by a contract that required its distributor to purchase an amount of inventory that increased 10% each year in order to maintain the exclusive relationship, leading to $85-$100 million in excess supply.

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