(Reuters) – Healthcare Services Group Inc agreed to pay a $6 million fine to settle U.S. Securities and Exchange Commission civil charges over accounting and disclosure violations that enabled it to report inflated quarterly earnings that met Wall Street analyst forecasts.
The SEC said on Tuesday that the provider of housekeeping, dining, and other services to healthcare facilities had in 2014 and 2015 failed to timely accrue for and disclose contingencies related to private litigation it faced.
John Shea, the company’s chief financial officer, will pay a related $50,000 fine, the SEC said.
(Reporting by Jonathan Stempel in New York)
