CSK Gets SEC Wells Notice Alleging Federal Security Laws Violation

CSK Auto Corp. said Wednesday that it received a Wells Notice from the staff of the Securities and Exchange Commission (SEC) in connection with an investigation prompted by issues raised by the company's audit and accounting personnel in 2005 and 2006. A Wells notice indicates the SEC staff is considering recommending to the agency to bring an enforcement action, alleging that CSK violated some provisions of the federal securities laws.

From MEMA Industry News/Dow Jones Newswires

PHOENIX — CSK Auto Corp. said Wednesday that it received a Wells Notice from the staff of the Securities and Exchange Commission (SEC) in connection with an investigation prompted by issues raised by the company’s audit and accounting personnel in 2005 and 2006. A Wells notice indicates the SEC staff is considering recommending to the agency to bring an enforcement action, alleging that CSK violated some provisions of the federal securities laws.

In 2006, the auto parts retailer’s audit committee conducted a seven-month investigation into CSK’s accounting practices that resulted in senior officer and finance management personnel departures, and the implementation of corrective actions.

CSK said it continues to cooperate with the SEC staff on the matter.

Separately, the company said a court in Arizona granted preliminary approval April 22 to a proposed settlement of a lawsuit titled Communication Workers of America Plan for Employees Pension and Death Benefits v. CSK Auto Corporation, et al.

The escrow account provided for under the agreement has been fully funded and a hearing on the final approval of the settlement is scheduled for July 1, the company said.