U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 25972 / April 9, 2024
Accounting and Auditing Enforcement Release No. 4496 / April 9, 2024
Securities and Exchange Commission v. Rosenberger et al., Civil Action No. 1:22-cv-4736 (DLC) (S.D.N.Y. filed June 7, 2022)
SEC Obtains Final Judgment Against Synchronoss Controller for Role in Alleged Accounting Misconduct
On April 8, 2024, the U.S. District Court for the Southern District of New York entered a final judgment against Joanna Lanni, imposing an injunction and ordering her to pay civil monetary penalties.
According to the SEC’s complaint, Lanni falsified Synchronoss’s books and records in connection with a 2016 transaction that resulted in the material overstatement of revenue by Synchronoss.
The SEC’s complaint charged Lanni with violating Section 13(b)(5) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 13b2-1 thereunder; and aiding and abetting Synchronoss’s violations of Sections 13(a) and 13(b)(2)(A) of the Exchange Act and Rules 12b-20, 13a-1, 13a-11, and 13a-13 thereunder. On January 26, 2024, the Court granted the SEC’s motion for partial summary judgment against Lanni, finding that Lanni violated Rule 13b2-1. Without admitting or denying the allegations of the complaint, Lanni consented to a final judgment in which she agreed to be permanently enjoined from violations of Rule 13b2-1 and agreed to pay $20,000 in civil monetary penalties. On April 8, 2024, the Court entered the final judgment.
The litigation is being led by Hayden Brockett, Theresa Gue, Lindsay S. Moilanen, and Richard G. Primoff under the supervision of Sheldon L. Pollock and Preethi Krishnamurthy.