Risk & Compliance

SEC Ends Material Sciences Probe

The regulatory review of the company's material weaknesses apparently will not result in any action against the company, which appointed a new CFO ...
Stephen TaubJuly 7, 2006

Material Sciences Corp. said the Securities and Exchange Commission has concluded its review of the company’s material weaknesses reported for fiscal 2005.

The company did not say what the results of the review were. Investors, apparently inferring from the announcement that the SEC had found no wrongdoing, pushed the company’s stock up. CFO James M. Froisland did not return a call for comment.

Material Sciences, which makes products used in acoustical, coated metal, and electronic applications, disclosed in May that it had received a notice from the regulator requesting the company voluntarily produce information regarding the material weaknesses in internal controls over financial reporting that it had disclosed for the fiscal year ending February 28, 2005. Material Sciences stressed that it cooperated fully with the commission’s request.

The company named Froisland senior vice president, chief financial officer, chief information officer, and corporate secretary two weeks ago. In a press release announcing his appointment, CEO Clifford D. Nastas stressed Froisland’s experience at public companies, and “especially in strengthening financial systems and controls.”