Reston-based Comscore Pays $5 Million to Settle Securities Fraud Charges

Comscore, a media measurement and analytics firm headquartered in Reston Town Center, and its former CEO Serge Matta have been charged by the U.S. Securities and Exchange Commission for defrauding investors and making false and misleading statements about the company’s performance.

In a Tuesday release, the SEC stated that Comscore and Mata agreed to pay $5.7 million in penalties. Matta will also reimburse Comscore $2.1 million.

“As the SEC orders find, Comscore and its former CEO manipulated the accounting for non-monetary and other transactions in an effort to chase revenue targets and deceive investors about the performance of Comscore’s business,” said Melissa R. Hodgman, Associate Director in the SEC’s Enforcement Division. “We will continue to hold issuers and executives accountable for such serious breaches of their fundamental duty to make accurate disclosures to the investing public while giving appropriate credit for a company’s prompt remedial acts and cooperation.”

The investigation revealed that the company — which measures audience engagement across different platforms — overstated revenue by roughly $50 million. Between February 2014 and February 2016, the company attempted to increase its reported revenue by exchanging data sets with another party by inflating revenue, according to the release.

The SEC also said Comscore and Matta create an “illusion of smooth and steady growth in Comscore’s business” by making false and misleading public disclosures about the company’s customer base and products. Specifically, the SEC found that Matta lied to the company’s internal accountant and external audit firm, allowing the company to artificially exceeds its analysis’ revenue target in seven consecutive quarters.

The last few months have been rocky for the media measurement firm. In April, the Wall Street Journal reported the company’s chief executive, Bryan Wiener, left the company after less than a year due to disagreements over the board’s execution of the company’s strategy.

Comscore is located in the heart of Reston Town Center at 11950 Democracy Drive.

Image via Google Maps

Recent Stories

A public art piece inspired by the connectivity and energy of atoms has been erected in Reston Town Center’s Hyatt Park. Called “Vidustria,” the installation is drawn from the word…

A man walks by trash bins next to the curb (via Trinity Nguyen on Unsplash) The service and staffing challenges plaguing trash collectors throughout Fairfax County have prompted one company…

Morning Notes

Sunlight behind a peaked, glass roof at the Vienna Metro station (staff photo by Angela Woolsey) Suspect in Mount Vernon Fatal Shooting Arrested — Fairfax County police arrested Kyjuan Omar…

The Fairfax County Government Center (staff photo by David Taube) With the 2022 elections now in the rearview mirror, five Fairfax County supervisors have already confirmed that they will be…

The Ravel Dance Studio will re-open for fall classes 2020. The school will offer in person and virtual online instruction. With over 5000 sq. ft. to social distance the school has added air ionization filtration systems, ballet barres, acrylic dividers, hands free bathrooms, strict monitoring and more.

The Ravel Dance Studio will produce a Nutcracker Ballet Hollywood style video through the Reston Community CenterStage. REGISTRATION online begins August 17.

Submit your own Community Post here for just $99.

Chris Green is one of the DMV’s finest fitness instructors. A Lululemon and South Block ambassador, he is a coach and mentor to so many. He embodies grace, positivity and motivation in ways that no one else can. If we could all learn a thing or two from him, the world would be a much better place. He does so much for others, and does so with a smile on his face 99% of the time.

He recently ruptured his Achilles and has an incredibly long and tough journey ahead. As if COVID hadn’t impacted fitness professionals enough, throw this in the mix and it’s a double, even triple whammy. CG is no longer able to work and do what he loves for the time being because of this and we’d love your support.

Read More

Submit your own Community Post here for just $99.

×

Subscribe to our mailing list