SEC Sonos False Revenue Fine

On Aug. 7, SEC fined Sonus Networks for false revenue projections.

  • Sonus Networks and executives agreed to pay over $1.9mn to settle charges.

Alleged Violations

  • Former Sonus CFO, Mark Greenquist, was found to be aware of red flags which
    undermined the company’s first quarter 2015 announced estimates of revenue.
  • Warnings included Sonus pulling forward deals initially projected to close 2015.
  • Greenquist issued a PR saying he was fine with first quarter estimate of $74mn.
  • Six weeks later, Sonus issued guidance of $74mn reveue, with forecasted sales.
  • Improperly reclassified, due to pressure from Michael Swade, VP of global sales.
  • Seven days pre quarter end, Sonus lowered revenue estimate to $47mn-$50mn.
  • Following their announcement, Sonus’s stock price dropped by over 33 percent.


  • Ribbon, Greenquist and Swade pay fine of $1.9mn, $30k, and $40k respectively.