Favorable Securities Fraud Judgment for the SEC Supported by Analysis Group Accounting Expert

November 5, 2026

Analysis Group was retained by the US Securities and Exchange Commission (SEC) in a civil enforcement action for alleged securities fraud brought against Brian Hutchison, the former CEO of surgical implant manufacturer RTI Surgical Holdings (later Surgalign Holdings). The SEC alleged that RTI shipped customer orders ahead of schedule to "pull forward" revenue and meet revenue goals. The SEC argued that RTI’s revenue recognition violated generally accepted accounting principles (GAAP) and that Mr. Hutchison’s failure to disclose such practices misled RTI’s investors.

An Analysis Group team led by Vice President John Drum and Manager Samuel Spare supported accounting expert J. Richard Dietrich. Professor Dietrich submitted affirmative and rebuttal reports and testified in deposition, opining that RTI’s early recognition of revenue violated GAAP and that the misstatements were material.

Referencing Professor Dietrich’s opinions, a judge in the US District Court for the District of Columbia agreed with the SEC that RTI violated GAAP and that Mr. Hutchison’s statements to investors were misleading and material. Further, the court granted the SEC’s Sarbanes-Oxley (SOX) claim for reimbursement of Mr. Hutchison’s bonuses and profit earned from the sale of RTI securities during the defined period. Mr. Hutchison’s motion for summary judgment was denied.