Our recent Client Alert discusses the SEC’s latest enforcement action against an IT services provider for alleged violations of Regulation G and other federal securities laws in its reporting and disclosure of non-GAAP financial performance measures. Without admitting or denying the findings in the SEC’s order, the company agreed to a cease-and-desist order, to pay an $8 million penalty, and to develop and implement appropriate non-GAAP policies and disclosure controls and procedures. The SEC’s action in this case demonstrates the SEC’s continuing focus on non-GAAP measures and the related disclosures, as well as the importance of disclosure controls and procedures in this area.