The civil settlement arises from a civil complaint that was filed simultaneously by the SEC against IES and six former officers and employees of the Company, alleging violations of the record-keeping, internal controls, and disclosure provisions of the federal securities laws. The complaint, which did not assert a claim of fraud against the Company or any individual, alleges that the Company improperly accounted for two receivables that were written down in 2004, inadequately disclosed its contingent liabilities in various prior periods, and failed to properly disclose a change in the Company's policy for bad debt reserves and resulting write-down of such reserves that occurred in 2003 and 2004. The settlement, in which IES will neither admit nor deny the allegations, will resolve the SEC complaint against the Company once it is approved by the court. The Company has agreed to an injunction against future violations of Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Securities Exchange Act of 1934 and Rules 12b-20, 13a-1, and 13a-13 thereunder.
Integrated Electrical Services, Inc. is a national provider of electrical solutions to the commercial and industrial, residential and service markets. The company offers electrical system design and installation, contract maintenance and service to large and small customers, including general contractors, developers and corporations of all sizes.
Contacts: Michael J. Caliel, President and CEO
Integrated Electrical Services, Inc.
713-860-1500
Ken Dennard / ksdennard@drg-e.com
Karen Roan / kcroan@drg-e.com
DRG&E / 713-529-6600
