The U.S. Securities and Exchange Commission has wrapped up an investigation related to KB Home's accounting and disclosures and won't recommend any enforcement action, KB Home announced Wednesday.

"We are pleased to announce that the SEC has concluded its investigation," KB CEO Jeff Mezger in the company's announcement. "We are glad to share with our investors and employees that the matter is now behind us as we continue to focus on restoring the sustained profitability of our home building operations and generating future growth."

Last October, KB disclosed the investigation in its quarterly report filed with the agency, saying that the SEC had issued a formal order of investigation regarding possible accounting and disclosure issues. In the report, KB said that the SEC "has stated that its investigation should not be construed as an indication ... that there has been any violation of the federal securities laws."

No further information about the investigation came to light until Wednesday, though there was some speculation among analysts at the time that it could possibly have something to do with the company's former CEO Bruce Karatz, who resigned in 2006. Last April Karatz was found guilty of two counts of mail fraud and two counts of making a false statement. He was acquitted of 16 other charges, including securities fraud.

Michael Rehaut, home building analyst at J.P. Morgan Securities, viewed the news as a positive for the company stock, which he said suffered from a discount to its peers based in part from the overhang from the investigation.

Shares of KB (NYSE:KBH) closed up 11.4% at $11.45 Wednesday on heavy volume but had slipped back to $11.36 in after-market trading.