Zale Corporation is a jewelry retailer with headquarters in Irving, Texas. Zale’s common stock is registered with the United States Securities and Exchange Commission and trades on the New York Stock Exchange under the symbol “ZLC”. Zale misstated financial reports for the fiscal years ended July 31, 2004 through 2008, and for fiscal quarters ended October 31, 2008, January 31, 2009 and April 30, 2009. The misstatement resulted from recording television advertising costs as prepaid advertising when they should have been expensed in the fiscal period they were incurred. The person responsible for abetting Zale’s violation was the marketing vice present, Rebecca Lynn Higgins. (Civil Action No. 3-11-cv-763, 2011)
Rebecca Lynn Higgins was a cause of Zale Corporation’s violation of Sections 13(a),13(B)(2)(A) and 13(B)(2)(B)1 and Rules 12b-20, 13a-1 and 13a-13. Section 13(a) in part states:
Every issuer of a security … shall file with the Commission, in accordance with such rules and regulations as the Commission may prescribe as necessary or appropriate for the proper protection of investors and to insure fair dealing in the security— (1) such information and documents … as the Commission shall require to keep reasonably current the information and documents required to be included in or filed with an application or registration statement filed pursuant to section 12, except that the Commission may not require the filing of any material contract wholly executed before July 1, 1962. (2) such annual reports … certified if required by the rules and regulations of the Commission by independent public accountants, and such quarterly reports … as the Commission may prescribe. Section 13(B)(2)(A) and 13(B)(2)(B) states:
Every issuer which has a class of securities registered pursuant to section 12 of this title and every issuer which is required to file reports pursuant to section 15(d) of this title shall— (A) make...