Cavco Industries Announces Acceptance of Settlement in SEC


PHOENIX, Sept. 23, 2022 (GLOBE NEWSWIRE) — Cavco Industries, Inc. (Nasdaq: CVCO) today announced that the United States District Court for the District of Arizona has approved the settlement of the Securities and Exchange Commission action against the company. The action was based on securities trading in 2017 led by former CEO Joseph Stegmayer, which resulted in an unrealized gain of approximately $265,000 for the Company. Without admitting or denying the findings of the consent judgment, the Company agreed to the imposition of an injunction against future violations of the anti-fraud and internal accounting control provisions of the Securities Exchange Act of 1934 and a fine of $1.5 million dollars.

The settlement resolves all claims in the action against the Company. Daniel Urness, its former chief financial officer, is the only remaining defendant in the current lawsuit. Mr. Stegmayer settled SEC claims against him last year.

“After working to resolve this matter for an extended period of time, we are very pleased to have reached a settlement on reasonable terms,” ​​said President and CEO Bill Boor.

.About Cavco Industries, Inc.

Cavco Industries, Inc., headquartered in Phoenix, Arizona, designs and manufactures prefabricated housing products primarily distributed through a network of independent and company-owned retailers. We are one of the largest producers of manufactured and modular homes in the United States, based on reported wholesale shipments. Our products are marketed under various brands, including Cavco, Fleetwood, Palm Harbor, Nationwide, Fairmont, Friendship, Chariot Eagle, Destiny, Commodore, Colony, Pennwest, R-Anell, Manorwood and MidCountry. We are also a leading producer of recreational park vehicles, vacation cabins and pre-engineered commercial structures. Cavco’s financial subsidiary, CountryPlace Mortgage, is an authorized Fannie Mae and Freddie Mac seller/repairer and issuer of Ginnie Mae mortgage-backed securities that offers conforming mortgages, non-conforming mortgages and home loans only to buyers of manufactured homes. Our insurance subsidiary, Standard Casualty, offers property and casualty insurance to owners of manufactured homes. Additional information about Cavco is available at https://www.cavco.com.

Forward-looking statements

Certain statements contained in this release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. In general, all statements that are not historical in nature are forward-looking. Forward-looking statements are generally included, for example, in discussions regarding the manufactured home industry; our financial performance and results of operations; and the expected effect of certain risks and uncertainties on our business, financial condition and results of operations. All forward-looking statements are subject to risks and uncertainties, many of which are beyond our control. Accordingly, our actual results or performance may differ materially from anticipated results or performance. Factors that could cause such differences include, but are not limited to: the impact of local or national emergencies, including the COVID-19 pandemic, including the impacts of state and federal regulatory actions that restrict our ability to operate our business in the ordinary course and impacts on (i) customer demand and the availability of financing for our products, (ii) our supply chain and the availability of raw materials for the manufacture of our products, ( (iii) labor availability and the health and safety of our workforce; and (iv) our liquidity and access to capital markets; labor shortages and the price and availability of raw materials; our ability to successfully integrate past or future acquisitions and the ability to realize anticipated benefits from such acquisitions; involvement in vertically integrated lines of business, including consumer credit for manufactured homes, trade finance and insurance; information technology failures or cyber incidents; our participation in certain financing programs for the purchase of our products by industrial distributors and consumers, which may expose us to additional risk of credit loss; material warranty claims and construction defects; our contingent wholesale funding redemption obligations; a write-off of all or part of our goodwill; our ability to maintain relationships with independent distributors; our business and operations being concentrated in certain geographic regions; governmental and regulatory disruptions, including prolonged congressional and presidential delays in approving budgets or continuing appropriation resolutions to facilitate the functioning of the federal government; reduced funding available from home moneylenders and increased regulation of loans; the availability of wholesale financing and limited floor plan lenders; market forces and fluctuations in housing demand; the cyclical and seasonal nature of our business; competition; general deterioration in economic conditions and turbulence in financial markets; unfavorable zoning ordinances; extensive regulations affecting the production and sale of prefabricated houses; the potential financial impact on the Company of the subpoenas we have received from the SEC and its ongoing investigation, including the risk of potential litigation or regulatory action, as well as costs and expenses arising from the subpoenas and the SEC’s investigation and events described or covered by the SEC subpoenas and investigations, which include the Company’s indemnification obligations and insurance costs relating to such matters, and potential damages to the reputation that the Company may suffer; losses not covered by our directors’ and officers’ insurance, which may be material and negatively impact financial performance; the loss of one of our leaders; our ability to generate income in the future; liquidity and ability to raise capital may be limited; provisions of organizational documents delaying or making more difficult a change of control; and share price volatility; and all other risks described in our filings with the SEC. Readers are specifically directed to review the risk factors described in Item 1A of the Company’s Annual Report on Form 10-K for the fiscal year ended April 3, 2021, as they may be amended from time to time, which identify material risks that could cause actual results to differ materially from those contained in the forward-looking statements. Cavco expressly disclaims any obligation to update any forward-looking statements contained in this release, whether as a result of new information, future events or otherwise. Investors should not place undue reliance on these forward-looking statements.

For more information, contact:

Mark Fusler
Corporate Controller and Investor Relations
E-mail: [email protected]
Call: 602-256-6263
On the Internet: www.cavco.com

Previous Why Pay For Order Flow Made Transactions Free But Left The SEC Skeptical
Next China ready to promote WTO reform with other G20 members: Ministry of Commerce_英语频道_央视网(cctv.com)