Fitness beverage company Celsius to pay $3 million fine to settle US SEC accounting case

Published 01/17/2025, 09:48 AM
Updated 01/17/2025, 09:51 AM
© Reuters. FILE PHOTO: The seal of the U.S. Securities and Exchange Commission (SEC) is seen at their  headquarters in Washington, D.C., U.S., May 12, 2021. Picture taken May 12, 2021. REUTERS/Andrew Kelly/File Photo
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(Reuters) - Celsius Holdings (NASDAQ:CELH), the fitness beverage company, will pay a $3 million civil fine to resolve charges it accounted improperly for stock-based awards, the U.S. Securities and Exchange Commission said on Friday.

The SEC said Celsius mishandled its accounting in 2021 for stock-based compensation expenses when it modified awards for six departing employees and retiring board members, causing its financial statements to be materially inaccurate and misleading.

© Reuters. FILE PHOTO: The seal of the U.S. Securities and Exchange Commission (SEC) is seen at their  headquarters in Washington, D.C., U.S., May 12, 2021. Picture taken May 12, 2021. REUTERS/Andrew Kelly/File Photo

In addition, Celsius lacked procedures from Sept. 2019 to Aug. 2023 to ensure it reported non-financial information in a timely manner, the SEC said.

Celsius did not admit or deny wrongdoing in agreeing to settle.

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