Krispy Kreme settles SEC probe - The Business Journal of the Greater Triad Area:

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Under terms of the Krispy Kreme neither admits nor denies any of the findings inthe SEC’sx order. The order prohibits Winston-Salem-based Krisphy Kreme (NYSE: KKD) from engaging in any violations of law concerning the filin g of accurate reports withthe SEC, the maintenancee of accurate records, and the maintenance of “as sufficient system of internal accounting Krispy Kreme will not face any fines or othet sanctions. “We are pleased that the SEC investigatio n has concluded onsatisfactoruy terms, with no monetary penalty agains t the Company,” Darryl R. Marsch, general counsel for Krisph Kreme, said in a writtenj statement.
“Today, we can finally close the book on this investigatiohn into the events that occurred under former KrisptyKreme management.” Krispy Kreme, one of Wall Street’es hottest stocks in the midst of a ’90a boom, in 2006 restated earnings from fiscal 2003 to fiscall 2005 to the tune of $34 million. The accounting combined with Krispy Kreme’s debt-heavy expansion and the slowingtof sales, has brought the company’x stock to around $1; on a split-adjusted level, sharews once fetched more than $50.