- Brixmor Property Group (BRX -0.5%) agrees to pay $7M to settle charges of fraud that the REIT and for former senior executive tried to manipulate a key non-GAAP metric that analysts and investors use to evaluate the company's stock.
- Relates to same-property NOI that the company reported from Q3 2013 to Q3 2015.
- Alleges former CEO Michael Carroll, former CFO Michael Pappagallo, former CAO Stephen Splain, and Michael Mortimer, who had been senior VP of accounting, with improperly adjusting the measure.
- Brixmor agreed to the settlement without admitting or denying the allegations.
- The U.S. Attorney's Office for the Southern District of New York also announced criminal charges against Carroll, Pappagallo, Splain, and Mortimer; Splain and Mortimer have pleaded guilty to those charges.