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SEC fines The Cheesecake Factory for misleading Covid impact disclosures

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US Securities and Exchange Commission said on Friday it had fined restaurant chain The Cheesecake Factory $125,000 to settle charges that it misled investors about the impact of the pandemic on its business, the first such case brought by the regulator.In March 23 and April 3 regulatory filings, the company said its restaurants were "operating sustainably" when in fact internal documents showed it was losing approximately $6 million per week due to pandemic lockdowns and had only about 16 weeks' of cash remaining, the SEC said.Although the company did not disclose this information with public investors, it did share it with potential private equity investors and lenders as it sought additional liquidity, the SEC said.

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