Chicago-based mutual fund tracker Morningstar said it is unsure what will become of allegations by the Securities and Exchange Commission that it overstated returns for the Rock Canyon Top Flight Fund last year.
Morningstar made the disclosure in a recent SEC filing related to its plans to go public, the Chicago Tribune reveals. Morningstar said it plans to price its initial stock offering of 7.6 million shares between $16 and $19 per share.
Morningstar officials, however, said they could offer investors no guidance on the SEC investigation, which began with an enforcement action notification last year.
"We cannot predict whether such discussions will resume, or the scope, timing or outcome of the investigation. [It] may include the institution of administrative, civil injunctive or criminal proceedings, the imposition of fines and penalties, and other remedies and sanctions," the company filing stated, continuing, "any of which could lead to an adverse impact on our stock price.
"We also cannot predict what impact, if any, these matters may have on our business, operating results or financial condition."
The Morningstar IPO, to be conducted via auction, takes place next week.