Media Coverage
Source: Agenda
Media Coverage
Press Contacts: Erik Cummins, Matt Hyams, Taina Rosa, Olivia Thomas
02.11.25
Last month, the SEC charged energy drink company Celsius with improper accounting controls violations for allegedly amending its vesting period for stock-based compensation for six departing employees and retiring board members in 2021. The charges led to a $3 million settlement, and recent reports described the case as a timely reminder, especially with the change in administration.
While the specific allegations in Celsius are not commonly seen, Litigation partner Adam Goldberg told Agenda that the underlying issues “are familiar territory for the SEC.”
“At its core, this case is about a company’s failure to maintain accurate financial records and meet its disclosure obligations—bedrock principles of SEC enforcement,” he said. He further noted that the SEC has long scrutinized companies for providing undisclosed perks to executives, emphasizing that the Celsius case serves as a “warning sign” for boards and their members.
“Boards must ensure that accounting practices align with GAAP and be vigilant about any undisclosed or excessive perks for current or departing executives. Strong governance is not just a defensive measure; it’s a critical safeguard for shareholder trust,” he concluded.