American Apparel, Inc. (AMEX: APP) is trading higher today on news that it may not be in any hot water with the Securities and Exchange Commission.
An SEC filing from this morning readdressed that it had been previously disclosed a subpoena from August 2010 “relating to the SEC’s investigation surrounding the change in the Company’s registered independent accounting firm and the Company’s financial reporting and internal controls.”
Another disclosure was that American Apparel received a subpoena in May 2011 from the SEC for documents relating to an OSHA complaint filed by a former employee in November 2010 with allegations over policies toward accounting of foreign currency transactions and transfer pricing.
Here is the money shot for American Apparel… “The Company cooperated fully with the subpoenas and investigation, and on January 9, 2012, the Company received a letter from the SEC’s Los Angeles regional office stating that its investigation was completed, and that it did not intend to recommend any enforcement action against the Company to the Commission.”
Shares are up 4% at $0.90 on the news today and after 90 minutes we have seen about 175% of normal trading volume.
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