BorgWarner Settles SEC Charges of Misstating Accounts

BorgWarner agreed to pay a penalty of $950,000 to the SEC in a settlement for charges that the company failed to report over $700 million in liabilities associated with asbestos claims from 2012 to 2016.

• BorgWarner agrees to cease and desist from future violations of these provisions
• The SEC’s order finds that BorgWarner did not conduct any substantive quantitative analysis to estimate asbestos claims, despite possessing nearly 40 years of historical raw claims data
• In early 2017, BorgWarner reported a charge for these claims and, in 2018, BorgWarner restated its financial statements
• BorgWarner also disclosed that its internal controls over ...