SEC Investigates Amazon

Will Amazon Ever Disclose Its SEC Investigation?

Analyst Summary– SEC Investigates Amazon:

 

For the third time since summer of 2014, the SEC has confirmed on-going enforcement proceedings at Amazon.com that are undisclosed. This report walks you through some possible scenarios worth reflecting upon.Your best question for Amazon

  • What communications has Amazon had with the SEC’s Division of Enforcement since summer 2014?

Fake_handshake_1000 | SEC Investigates Amazon

For the third time since summer of 2014 ,the SEC has confirmed on-going enforcement proceedings at Amazon.com that are undisclosed.

This report walks you through some possible scenarios worth reflecting upon.Your best question for Amazon –What communications has Amazon had with the SEC’s Division of Enforcement since summer 2014?

There’s no such thing as “routine matters” when it comes to the SEC’s Division of Enforcement. When there’s communication with this SEC division, it’s typically related to some kind of investigation. Until we find out what’s really going on between Amazon and the SEC, we suggest you proceed with appropriate caution.

We first learned of undisclosed SEC investigative activity at Amazon in Jun-2014. Since then, the SEC has repeatedly confirmed on-going enforcement proceedings at Amazon that were undisclosed at the time. This occurred on 16-Jul-2014, 08-Apr-2015, and now 04-Jan-2016. In repeated searches of company filings back to Jul-2012, we have consistently found no disclosures of SEC investigative activity by Amazon. All we know about the SEC probe at this time is that it somehow pertains to the conduct, transactions, and/or disclosures of Amazon.com.

So far the market’s been ho-hum to our earlier warnings of undisclosed SEC investigative activity at Amazon. That could change in an instant, especially if Amazon discloses an SEC probe on a topic that bothers people. Like most companies, we expect they’d likely say very little, spin it in a way to calm the faithful, and simultaneously dodge questions. If Amazon ever does get around to disclosing an SEC probe, it would then be safe to assume management judged the exposure sufficiently material that it had to be disclosed.

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