SEC subpoenas CSX for misstatements in financial reports

JACKSONVILLE, Fla. – The Securities and Exchange Commission has named CSX Corp. cited for making false statements in previous financial reports, CSX said in its latest quarterly filing with the government agency.

CSX delayed its second-quarter financial reports by about two weeks as it reviewed accounting for the capitalization of engineering materials and labor costs, a move the company announced in July [see “CSX delays quarterly earnings report …,” Trains News Wire, July 9, 2024. The CSX report to the SEC for the second quarter, filed following the Aug. 5 announcement of results, said the company had identified misstatements but determined their impact was “immaterial to the financial statements for all prior periods.”

But the third-quarter Form 10-Q financial statement filed today (Oct. 17) says the company received a subpoena earlier this month “requesting information relating to, among other things, the accounting restatement disclosed in the company’s Aug. 5, 2025, Form 10-Q. The company has also been responding to information requests by the SEC related to certain of the Company’s non-financial performance metrics. The company is cooperating with the SEC and providing information responsive to these requests. While the company believes its reporting complied with applicable requirements in all material respects, the company cannot anticipate the timing, scope, outcome, or possible impact of the investigation, financial or otherwise.”

CSX reported flat revenue and a 1% decrease in operating income in the second quarter [see “CSX reports flat earnings …,” News Wire, Aug. 5, 2024]. On Wednesday, the railroad said it had a 1% increase in revenue and a 7% increase in operating income and reported the first financial impacts of Hurricane Helene and Hurricane Milton [see “CSX sees slight revenue gain …,” News Wire, Oct. 16, 2024].

The Wall Street Journal first reported the SEC subpoena.