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LOS ANGELES (CNS) - The Securities and Exchange Commission announced Friday that Calabasas-based Cheesecake Factory Inc. will pay a 5,000 penalty for making "false or misleading" disclosures about the impact of the COVID-19 pandemic on its business operations and financial condition.This is the first time the SEC has brought allegations against a public company for misleading investors about the financial effects of the pandemic.According to the SEC's order, the Cheesecake Factory restaurant group said in regulatory filings in March and April that its eateries were "operating sustainably," while failing to disclose that the company was losing roughly million in cash per week and had just 16 weeks of cash remaining.The order finds that although the company did not disclose the information in its filings, the group did share the particulars with potential private equity investors or lenders as it sought additional liquidity during the public health crisis.Without admitting the SEC's findings, the restaurant company agreed to pay the penalty and to cease-and-desist from further violations of the charged provisions. In determining to accept the settlement, the SEC said it considered the cooperation afforded by the company.A Cheesecake Factory representative pointed to a disclosure form filed Friday in which the company stated it was in full compliance with the cease- and-desist order and that the company "fully cooperated with the SEC in the settlement" without admitting or denying the regulators' allegations.The order also finds that although the March filing described actions the company had undertaken to preserve financial flexibility during the pandemic, it failed to disclose that Cheesecake Factory already had informed its landlords that it would not pay rent in April due to the impacts that COVID- 19 inflicted on its business."During the pandemic, many public companies have discharged their disclosure obligations in a commendable manner, working proactively to keep investors informed of the current and anticipated material impacts of COVID-19 on their operations and financial condition," SEC Chairman Jay Clayton said. "As our local and national response to the pandemic evolves, it is important that issuers continue their proactive, principles-based approach to disclosure, tailoring these disclosures to the firm and industry-specific effects of the pandemic on their business and operations. It is also important that issuers who make materially false or misleading statements regarding the pandemic's impact on their business and operations be held accountable."Cheesecake Factory had notified its landlords that it wouldn't pay rent on April 1 due to financial complications stemming from the coronavirus outbreak. A letter sent by Chief Executive David Overton to the restaurant group's landlords -- many of which are shopping mall operators -- was released publicly in March by Eater L.A.The company has 294 restaurants in North America, 39 in California and five in San Diego County.Its largest landlord is Indianapolis, Indiana-based real estate company Simon Property Group, which provides space for 41 Cheesecake Factory locations, according to the San Fernando Valley Business Journal."When public companies describe for investors the impact of COVID-19 on their business, they must speak accurately," said Stephanie Avakian, director of the SEC's Division of Enforcement. "The Enforcement Division, including the Coronavirus Steering Committee, will continue to scrutinize COVID- related disclosures to ensure that investors receive accurate, timely information, while also giving appropriate credit for prompt and substantial cooperation in investigations." 3725
LOS ANGELES (AP) — Officials say a Northern California county has begun a door-to-door coronavirus testing pilot program in a majority Latino community that has become a virus hot spot. Santa Clara County volunteers started handing out self-testing kits in the East San Jose neighborhood of Silicon Valley’s San Jose last week, where 55% of the population is Latino and officials say many residents do not have the ability or means to get tested. Communities of color nationwide have been disproportionately affected by the virus. Santa Clara County’s efforts come as more than 325,000 doses of a COVID-19 vaccine are on their way to California on Sunday amid record-setting case numbers and shrinking intensive care unit capacity. 739

LOS ANGELES (AP) — A judge set bail at million for the leader of a Mexican megachurch charged in California with child rape and human trafficking. The staggering bail amount all but ensures that Naasón Joaquín García will remain jailed as he awaits trial. The judge said he had seen evidence of “a systematic pattern of sexual assault of minors.” Garcia faces three dozen felony counts. He has denied wrongdoing. Garcia is the spiritual leader of La Luz del Mundo, which is Spanish for “The Light Of The World.” The Guadalajara, Mexico-based evangelical Christian church claims 5 million followers worldwide. 620
LOS ANGELES (AP) — A police investigation confirmed suicide was the cause of death of a Black man found hanging from a tree in a Southern California city park last month. Los Angeles County sheriff's officials made the announcement at a Thursday news conference. The body of 24-year-old Robert Fuller was found early on June 10 in a park near City Hall in Palmdale. Sheriff's deputies found no evidence of a crime and an autopsy conducted the next day produced an initial finding of suicide. That outraged Fuller's family, who said he wouldn't have taken his own life. They said authorities were too quick to dismiss the possibility it was a crime. 656
LOS ANGELES (KGTV) – Two children inside an RV involved in an hours-long chase and standoff with a domestic violence suspect were safely recovered Tuesday night, authorities reported. The children in the vehicle are said to be 11-months-old and 3-years-old. Authorities are still searching for the suspect. The driver of the RV was involved in another pursuit in Santa Clarita that was canceled for safety concerns Tuesday, KABC reported.The chase started on surface streets but the suspect later entered the 101 Freeway followed by the 170.The suspect drove at normal speeds between 60 and 70 miles per hour. The chase came to an end at a dead-end road in Bakersfield. The mother of the children reported the domestic violence suspect to deputies, according to KABC. Watch live on Facebook:10News is monitoring breaking developments. 867
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