The Securities and Exchange Commission (SEC) is investigating “possible accounting and disclosure issues” at KB Home, according to financial documents filed Friday.
The Los Angeles-based public builder provided little information in its quarterly filing beyond that it is cooperating with the SEC and that it “cannot predict the outcome of, or the timeframe for, the conclusion of this matter.”
It represents the newest SEC-related challenge for KB Home. Just over a year ago, former CEO Bruce Karatz said he would pay more than $7 million to settle civil claims regarding the backdating of stock options. He pleaded not guilty earlier this year to criminal charges and is waiting for trial.
That issue has also affected KB’s former vice president of human resources, Gary A. Ray. Earlier this year, Ray settled SEC charges of backdating stock options, agreeing to pay nearly $600,000 in interest and penalties without admitting or denying the allegations.
KB delivered more than 2,200 homes in 2009’s third quarter, but posted a $66 million net loss on $458 million in revenue.
Alison Rice is senior editor, online, at BUILDER magazine.
Learn more about markets featured in this article: Los Angeles, CA.