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The Cheesecake Factory settles with SEC over 'false' filings

The Cheesecake Factory settles with SEC over 'false' filings

The Cheesecake Factory is based in Calabasas Hills, California and owns or operates nearly 300 restaurants. (Photo: AP)

NEW YORK: The US Securities and Exchange Commission said on Friday (Dec 4) that The Cheesecake Factory settled charges that it misled investors on the impact the pandemic was having on its business.

The Cheesecake Factory said in March and April government filings that it was “operating sustainably” during the pandemic. But the SEC said on Friday that the filings were “false and misleading” because internal documents at time showed the restaurant chain was losing US$6 million in cash per week and had projected that it had 16 weeks of cash left.

The SEC also said The Cheesecake Factory, which is based in Calabasas Hills, California, and owns or operates nearly 300 restaurants, didn’t disclose that it wouldn't pay April rent to its landlords.

Like other restaurants, The Cheesecake Factory has been hurt by the pandemic, temporarily closing locations. Most of its restaurants have reopened, but it is restricting how many people can eat inside.

The Cheesecake Factory agreed to pay a US$125,000 fine to the SEC. The company did not admit or deny the SEC’s findings.

In a government filing on Friday, the company said it “fully cooperated" with the SEC on the settlement.

Source: AP/kv

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