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2.98 MB
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Extraction Summary

1
People
6
Organizations
1
Locations
4
Events
1
Relationships
4
Quotes

Document Information

Type: Corporate disclosure / risk factors report (house oversight evidence)
File Size: 2.98 MB
Summary

This document appears to be a page from a corporate risk disclosure report (stamped House Oversight) detailing risks associated with 'The Company' and KLC (Knowledge Learning Corporation). It outlines restrictions on business activities due to Michael Milken's past SEC judgments and criminal plea, preventing the company from acting as a broker or dealer. Additionally, it details risks related to KLC's child care operations, specifically the potential for lawsuits regarding child abuse, the impact of negative publicity on reputation, and the adequacy of insurance coverage for such claims.

People (1)

Name Role Context
Michael R. Milken Subject of legal judgments
Consented to judgments restraining him from associating with brokers/dealers; his legal status restricts 'The Company...

Organizations (6)

Name Type Context
The Company
Cannot engage in certain businesses due to association with Michael Milken.
KLC
Subject of risk factors regarding abuse allegations, reputation, and insurance. (Likely Knowledge Learning Corporation).
KLC OpCo
Financial position may be affected by litigation.
Securities and Exchange Commission
Plaintiff in actions against Milken and Drexel Burnham Lambert.
U.S. District Court for the Southern District of New York
Venue for judgments entered against Milken.
Drexel Burnham Lambert Incorporated
Named in civil action alongside Milken.

Timeline (4 events)

April 24, 1990
Milken consented to judgment concurrently with plea agreement covering criminal violations.
U.S. District Court for the Southern District of New York
February 24, 1998
Michael Milken consented to entry of final judgment in SEC v. Michael R. Milken et al.
U.S. District Court for the Southern District of New York
February 26, 1998
Judgment entered restraining Milken from associating with brokers, dealers, or investment advisors.
U.S. District Court for the Southern District of New York
March 11, 1991
SEC instituted proceeding barring Milken from association with brokers/dealers.
N/A

Locations (1)

Location Context
Location of the U.S. District Court.

Relationships (1)

Michael R. Milken Business Constraint The Company
The Company is restricted from certain businesses because of its association with Milken and his legal judgments.

Key Quotes (4)

"The Company cannot be in the business of or associated with a broker, dealer, investment company, investment advisor, or municipal securities dealer (collectively, "prohibited businesses")."
Source
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Quote #1
"As a result, the Company cannot pursue any acquisitions or investments that may have the effect of the Company being in any prohibited business."
Source
HOUSE_OVERSIGHT_024483.jpg
Quote #2
"KLC is subject to claims and litigation arising in the ordinary course of business, including claims and litigation involving allegations of physical or sexual abuse of children."
Source
HOUSE_OVERSIGHT_024483.jpg
Quote #3
"Any adverse publicity concerning such incidents at one of KLC's child care centers, or child care centers generally, could greatly damage KLC's reputation..."
Source
HOUSE_OVERSIGHT_024483.jpg
Quote #4

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