Carter's Inc. (CRI):   No Records Found on Appeal. In a letter dated 03-Dec-2014, the SEC cited the "law enforcement exemption" of the FOIA as basis to deny the public access to the detailed records we sought on this company. As a matter of law, the SEC was acknowledging some sort of investigative activity.  At the time of the SEC’s earlier response to us, we also found no clear disclosures of SEC investigative activity made by the company.  This combination was sufficient for us to add Carter's to the Probes Reporter Watch List as a company with a “Possible Undisclosed SEC Investigation”.

We filed an administrative appeal to challenge this denial. An appeal response, regardless of outcome, is the highest standard we can achieve regarding SEC investigative activity at a public company.  In our experience, about two-thirds of the SEC’s law enforcement exemption responses are confirmed on appeal.  This is not one of them.

In a response to our appeal dated 16-Jan-2015, the SEC has now informed us there are no records responsive to our request.  While the SEC’s letter was not specific, we were told this could mean --

• There was an investigation that concluded in the past but the SEC’s records were not current at the time of our request
   
• Alternatively, there may be an investigation involving not the company, but some other person or entity in which the company was incidentally named or tangentially listed.

For more on what this may have been about, see this story we found posted at LexisNexis Legal Newsroom:  The SEC’s Continuing Investigation Regarding Carter’s, Inc.

Based on new information presented here, we are removing Carter's Inc. from our Watch List.

To learn more on our process and what our findings mean, click here.

Notes: The SEC did not disclose the details on investigations referenced above. The SEC reminds us that its assertion of the law enforcement exemption should not be construed as an indication by the Commission or its staff that any violations of law have occurred with respect to any person, entity, or security.  New SEC investigative activity could theoretically begin or end after the date covered by this latest information which would not be reflected here.