CEO Admits to Lying in Disclosures to SEC Despite Risk of Serious Consequences
11g $2.43 basic and $2.41 diluted earnings per share, 93% higher than the $137 million or $1.26 basic and $1.24 dilueted earnings per share recorded in 2021.
CEO’s Spouse: “What is going on here? You’ve never been this evasive before. What did you lie about in this disclosure?”
CEO: “It’s… complicated. In the disclosure, I said that organic revenue for the fourth quarter of 2022 increased by 6%. But the truth is that it was inflated. We replaced approximately $20 million of contractual revenue from Arai, following the previously disclosed cessation of its operations, with higher margin organic foundry customer revenue. That inflated the revenue and made it look better than it was.”
CEO’s Spouse: “You lied to investors. Are you aware of just how serious this is?”
CEO: “I understand the severity. We’re still in the process of going through the facts and figuring out our next steps. I’m sorry for not being totally honest in the disclosure, but I was hoping that we could avoid any unnecessary attention.”
CEO’s Spouse: “This is unbelievable. You have to tell the truth, no matter what. Lying to investors is a huge breach of ethics and you could get in serious legal trouble if the SEC finds out.”
CEO: “I know. I’m still trying to figure out the best way to handle this. I want to do the right thing and take responsibility for my mistake. I want to try to minimize any potential damage this could cause to our company and our investors.”
CEO’s Spouse: “Well, that’s the least you can do. I think you should be open and honest about this and come clean with your investors immediately. That’s the only way you’re going to be able to make this right.”
CEO: “You’re right. I’m going to contact the SEC and admit the truth. Hopefully, I’ll be able to show them how we’re going to make it better in the future.”
Original Release: https://www.globenewswire.com/news-release/2023/02/16/2609556/0/en/Tower-Semiconductor-Reports-2022-Fourth-Quarter-and-Full-Year-Financial-Results.html