Rollins (ROL) Announces Settlement of SEC Investigation, Will Pay $8M Penalty

Rollins Inc. (NYSE: ROL) announced today it has reached a settlement with the U.S. Securities and Exchange Commission (SEC) to fully resolve an investigation into the impact of certain adjustments to accruals and reserves on reported earnings per share in the first quarter of 2016 and the second quarter of 2017. Under terms of the settlement, Rollins neither admits nor denies the SEC's findings and will pay an $8 million civil penalty, which was fully accrued in the third and fourth quarters of 2021.

"Since the Company first learned of this investigation, we have taken this matter very seriously, conducting an internal review and taking proactive steps to address the findings," said Elizabeth Chandler, Vice President, General Counsel and Corporate Secretary at Rollins. "We have also reevaluated and strengthened our internal controls over financial reporting, and improved processes, procedures and supporting documentation, including those related to management's judgments and estimates impacting reported financial results. Rollins remains committed to doing the right thing on behalf of our employees, investors and customers and we are pleased to have reached a resolution to this matter."

The individuals who were leading the accounting department at the time are no longer employed by the Company and there will be no restatement of the Company's historical financial results related to the SEC's investigation.

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