MIDLOTHIAN, VA— April 21, 2011– Leading videogame publisher, SouthPeak Interactive Corporation announced today that the company along with its chairman, Terry Phillips, settled the Securities and Exchange Commission investigation pending against the company. This investigation arose from the Company's restatement of its financial statements for the quarter ending March 31, 2009. The restatement was caused by a transaction that was undertaken to financially benefit the Company, but which was not properly reflected in the Company’s financial statements or approved with adherence to necessary procedures.
According to Melanie Mroz, SouthPeak’s CEO,“We determined to settle the investigation in order to move forward with our business without further distraction from the investigation. We are fully cognizant that the need to restate our March 31, 2009 financial statements resulted from inadequate controls and procedures that have since been corrected. After we discovered the errors in our financial statements, we did everything we could to promptly rectify the situation. We fully cooperated with the SEC from the first day. In the end, however, it made the most sense for the company and Terry to negotiate an acceptable settlement that does not require us to admit any wrong-doing and close this chapter as we constantly strive to improve our processes, systems and personnel to meet our obligations as a public company.”
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About SouthPeak Interactive Corporation
SouthPeak Interactive Corporation develops and publishes interactive entertainment software for all current hardware platforms including: Xbox 360 ® videogame and entertainment system from Microsoft, PlayStation ® 3 computer entertainment system, PSP ® (PlayStation ® Portable) system, PlayStation ® 2 computer entertainment system, Wii TM , Nintendo DS TM , iPhone and Windows PC. SouthPeak's games cover all major genres including action/adventure, role-playing, strategy, racing, puzzle, sports and edutainment. SouthPeak's products are sold in retail outlets in North America, South and Central America, Europe, Australia and Asia. SouthPeak is headquartered in Midlothian, Virginia, and has offices in Grapevine, Texas and Leicester, England.
For additional information, please visit SouthPeak’s corporate website: www.southpeakgames.com or follow us on Twitter @SouthPeakGames.
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