Bally Total Fitness Settles With SEC

by sean on March 1st, 2008

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Franchise Fitness Giant Bally Total Fitness Reaches Settlement with SEC

The embattled fitness franchise giant has settled with the SEC, and announced that the Department of Justice closed its criminal investigation of the same issues involving restatement of earnings. Here’s the release issued by Bally Total Fitness:

CHICAGO, Feb. 28 /PRNewswire/ — Bally Total Fitness Holding Corporation today announced that it has reached a settlement with the Securities and Exchange Commission (”SEC”) concerning the SEC’s previously disclosed investigation relating to the restatement of the Company’s financial statements for 2002 and 2003 and selected financial data for 2000 and 2001. The Company settled the proceedings without admitting or denying the SEC’s findings. The settlement does not require the Company to pay a monetary penalty. As part of the settlement, the Company has consented to a final judgment requiring future compliance with Federal securities laws and regulations. The Company fully cooperated with the SEC during the course of the SEC’s investigation.
Also today, the Company announced that the Department of Justice has closed the previously disclosed criminal investigation involving the Company’s restatement, without action against the Company.
Don R. Kornstein, Chairman of Bally Total Fitness, said, “I am pleased that the conclusion of the government investigations puts these matters behind us as we continue to execute our strategies for the long-term success of our business.”
About Bally Total Fitness
Bally Total Fitness is among the largest commercial operators of fitness centers in the U.S., with over 375 facilities located in 26 states, Mexico, Korea, China and the Caribbean under the Bally Total Fitness(R) and Bally Sports Clubs(R) brands. Bally offers a unique platform for distribution of a wide range of products and services targeted to active, fitness-conscious adult consumers.

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