May 18, 2009 (FinancialWire) — Hudson Highland Group, Inc. (NASDAQ: HHGP) said that the company and its chief financial officer have been notified that the enforcement division of the SEC plans to recommend that an injunctive action be brought against the company for alleged failures to properly disclose its North American state sales tax liability in various SEC filings from June 30, 2006 through March 31, 2007.

The notification, called a Wells Notice, informs financial officials of a company that a regulator intends to recommend that enforcement proceedings be launched. It describes in broad strokes the violation that the SEC’s enforcement staff believes has occurred.

According to Hudson Highland, the total amount of the company’s past due sales tax liabilities for the seven-year period from 2001 to 2007 was less than $3.9 million. It said that company clients reimbursed the company for around $450,000 of such liabilities, and that all taxes due to the various states have been paid.

The company and its chief financial officer said they disagree with the SEC Staff’s recommendation, but continue to cooperate with the SEC Staff with respect to its investigation.

New York-based Hudson Highland is a provider of permanent recruitment, contract professionals and talent management services worldwide. The company employs nearly 3,000 professionals serving clients and candidates in more than 20 countries.

FinancialWire(tm) is a fully independent, proprietary news wire service. FinancialWire(tm) is not a press release service, and receives no compensation for its news, opinions or distributions. Further disclosure is at the FinancialWire(tm) web site (http://www.financialwire.net/disclosures.php). Contact FinancialWire(tm) directly via inquiries@financialwire.net.

Free annual reports for companies mentioned in the news are available through the Free Annual Reports Service (http://investrend.ar.wilink.com/?level=279).

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.