The Information recently reported about the U.S. Securities and Exchange Commission’s recent investigations of private tech companies and whether they are following an SEC rule giving employees participating in certain company stock plans access to detailed financial information. The SEC has particularly been interested in “unicorns”—private companies with valuations exceeding $1 billion.
At issue is an SEC rule that requires companies that issue more than $5 million in stock awards in a twelve month period to provide financial statements to the employees covering at least two years. The Information reported that the SEC has sent letters in the last two years to private tech companies to determine whether they were properly disclosing their fundraisings in filings. That effort does not appear to have resulted in much further enforcement.
The full article is available through The Information website.