TheStreet Inc., which operates the financial website TheStreet.com, and three former executives were sued by the U.S. Securities and Exchange Commission over claims of accounting fraud at the company.
The SEC filed three separate complaints in federal court in Manhattan today against TheStreet, former Chief Financial Officer Eric Ashman and two former co-presidents of a unit of the company, Gregg Alwine and David Barnett.
TheStreet, co-founded in 1996 by CNBC host Jim Cramer, reported in 2010 that the SEC was investigating the accounting at its former Promotions.com unit. TheStreet acquired the online promotional agency for $20.7 million in August 2007 and sold it to a company owned by Promotions.com managers for $3.1 million in December 2009, according to a company filing.
TheStreet fell 5 cents, or 3 percent, to $1.60 at 1:14 p.m. New York time in Nasdaq Stock Market trading.
Bloomberg LP, the parent company of Bloomberg News, competes with TheStreet.com in providing financial news.
The cases are SEC v. TheStreet Inc., 12-cv-9187; SEC v. Ashman, 12-cv-9189; and SEC v. Alwine, 12-cv-9191, U.S. District Court, Southern District of New York (Manhattan).