United Health Products Announces Settlement of SEC Investigation
HENDERSON, NV, June 16, 2022 (GLOBE NEWSWIRE) — via NewMediaWire – United Health Products, Inc. (OTCPK: UEEC) (UHP), today announced a final settlement of the SEC investigation originally reported by the company in its annual report on Form 10-K for the fiscal year ended on December 31, 2021.
UHP has agreed with the Securities and Exchange Commission (the Commission) to the following resolution terms that were previously described in its Form 8-K filed on April 29, 2022, among other things, in a consent judgment against the company, without the company admit or deny the Commission’s allegations:
The company being permanently ordered to violate: Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 under the Exchange Act; Section 17(a) of the Securities Act of 1933; Section 13(a) of the Exchange Act and Rules 12b-20, 13a-1 and 13a-13 of the Exchange Act; Section 13(b)(2)(A) of the Exchange Act; and Section 13(b)(2)(B) of the Exchange Act, and
The company being required to pay a civil penalty of $450,000 in four installments within the next 270 days, plus applicable statutory interest on any amounts unpaid after July 15, 2022.
Further, the company has agreed not to take any action or make any public statement denying the allegations contained in the Commission’s complaint or giving the impression that the complaint is without factual basis; and not to make any public statement that the company does not admit the allegations in the complaint without also stating that the company does not deny the allegations. This restriction would not affect the company’s right to take legal or factual positions in litigation or other legal proceedings in which the Commission is not a party, nor would it affect the company’s testimonial obligations. .
In a separate settlement agreement between the Commission and Mr. Douglas Beplate, former CEO and director of the Company, Mr. Beplate will, among other things, make reimbursement payments to the Company totaling $1,020,000 during the six coming months.
Brian Thom, President and CEO of UHP, said, “We are delighted to have put this four-year process behind us and to be able to focus our management and financial resources on important business priorities. We continue to seek damages related to the audit and review of our financial statements, which included the events that were the subject of this SEC case, from our former auditor in connection with a separate trial where discovery is now complete and we are discussing a mediation process with the defendant.”
About United Health Products — United Health Products develops, manufactures and markets HemoStyp™, a patented hemostatic agent based on neutralized oxidized regenerated cellulose (NORC). HemoStyp is an all natural product designed to control bleeding. UHP currently offers a suite of hemostatic products to the dental, veterinary and consumer markets, and is focused on gaining clearance to enter the human surgery market.
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