The SEC’s Division of Enforcement recently instituted cease-and-desist proceedings against a company for violating Section 13(a) of the Exchange Act and Rule 13a-11 by including non-GAAP financial measures in two of its earnings releases without presenting the most directly comparable GAAP financial measures "with equal or greater prominence." The non- GAAP financial measures, which included adjusted EBITDA and adjusted net income, appeared in the headlines and a highlights section of the earnings releases. The company agreed to pay a US$100,000 civil money penalty in settlement of the enforcement action.