December 10, 2019/US SEC
On December 10, 2019, the U.S. District Court for the District of Massachusetts entered a final judgment in a previously-filed SEC enforcement action against Harpreet Grewal, the former Chief Financial Officer of Constant Contact, Inc. The SEC’s action, filed August 21, 2018, charged Grewal with hiding Constant Contact’s slowing customer growth from investors and inflating the company’s publicly reported subscriber numbers.
Without admitting or denying the SEC’s allegations, Grewal consented to the entry of the final judgment. The judgment enjoins Grewal from future violations of the antifraud provisions of Sections 17(a)(2) and (3) of the Securities Act of 1933 and aiding and abetting violations of the books and records and reporting provisions of Sections 13(a) and 13(b)(2)(A) of the Securities Exchange Act of 1934 and Rules 12b-20, 13a-1, 13a-11, and 13a-13 thereunder. Further, the judgment orders Grewal to pay disgorgement and prejudgment interest of $250,000 and a civil penalty of $100,000.
The investigation and litigation were conducted by Michael J. Vito, David M. Scheffler, Rachel E. Hershfang, Patrick Noone, and Celia D. Moore of the Boston Regional Office.