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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 (KGTV) — California has destroyed more than 1.1 million illegal marijuana plants across 455 grow sites as part of the state's annual campaign against illegal cannabis.Over 13 weeks, the state conducted operations in 29 counties to eradicate the plants, arresting 140 individuals and seizing 174 weapons in the process. This year's campaign was also complicated by coronavirus precautions and wildfires throughout the state."Illegal marijuana planting risks public safety, endangers public health, and devastates critical habitats and wildlife," said California Attorney General Becerra. "Every year, the California Department of Justice works with federal, state, and local partners to hold illegal growers accountable and reclaim our public lands. I want to thank our CAMP teams for their resilience and commitment during this tumultuous year. Between COVID-19 and wildfires, the 2020 CAMP season was no cakewalk, but as a result of their hard work, more than one million illegal marijuana plants were eradicated."According to the Associated Press, the largest of this year's busts was in Riverside County where 293,000 plants were seized.The state says many of these illegal grow sites were loaded with trash and banned pesticides, which can find ways into the state's waterways. Illegal growers also disrupt the natural flow of water by creating irrigation systems, endangering nearby wildlife and plants, the state added. 1445

LOS ANGELES (CNS) - A Los Angeles entertainment executive reportedly received two houses in Tennessee free of charge from the man authorities say was responsible for the Christmas Day bombing in downtown Nashville.FBI officials said Sunday that they believe Anthony Quinn Warner, 63, was responsible for the bombing, which originated in an RV parked downtown and occurred at 6:40 a.m. Nashville time Friday morning. The blast damaged an AT&T building and interfered with cellphone service and police and hospital communications in several Southern states.They also said Warner is believed to have died in the bombing, and there was no indication that anyone else was involved in the crime.The Daily Mail reported late Saturday that a house worth 9,000 was transferred to 29-year-old Michelle Swing in January 2019 by Warner, and another 0,000 home was transferred to Swing last month.Swing transferred the first house to another person, the Daily Mail reported.The 0,000 house was raided by FBI agents Saturday as part of the investigation into the bombing. Swing told the Daily Mail she had no knowledge of the most recent transfer."In the state of Tennessee you can deed property to someone else without their consent or their signature or anything," Swing told the paper. "I didn't even buy the house he just deeded it over to me without my knowledge. So, this all very weird to me, that's about all I can say."Swing is an artist development director at AEG Presents and a former StubHub executive. WBIR in Nashville reported that Swing is a graduate of the University of Tennessee, and previously had a Lenoir City, Tennessee, address.A spokeswoman for the FBI's Los Angeles field office told City News Service the case was being handled by the agency's Memphis office. A spokeswoman for the Memphis office said the agency would not comment on an ongoing investigation.Federal investigators told reporters Sunday they are trying to determine whether the bomber was motivated by "paranoia over 5G technology." FBI officials asked anyone who knew Warner or might be familiar with his motives to contact the agency. 2137

LOS ANGELES (AP) — A fire early Friday destroyed a Southern California distribution facility that was used to ship items to Amazon customers. Authorities said employees got out and there were no reports of injuries. The fire briefly closed a nearby freeway as flames shot high into the air. The fire started around 5 a.m. Friday in Redlands, about 60 miles east of Los Angeles. The flames that engulfed the structure spread to some of the many truck trailers parked at loading docks. The facility was operated by a global logistics company that was dedicated to Amazon. A spokesperson said customer orders will be filled from other sites. 647

LOS ANGELES – A judge ruled Thursday that Starbucks and other coffee sellers must label coffee sold in California with cancer warnings, according to the Associated Press.The decision comes after a lawsuit was filed by the nonprofit Council for Education and Research on Toxins that targeted several companies, including Starbucks and 7-Eleven, CNN previously reported.The lawsuit alleged that the companies “failed to provide clear and reasonable warning” that drinking coffee could expose people to acrylamide, which is created when coffee beans are roasted.Court documents filed by the nonprofit state that, under Proposition 65, businesses must warn people about the presence of agents that affect health.The coffee industry claimed that the acrylamide was present, but only in harmless levels. The industry also argued that they should be exempt because the chemical results naturally from the cooking process. 927