While the company would not ordinarily be required to file an 8-k notifying the public that a formal SEC investigation had begun, there is a wrinkle in this case that I think caused it to be required. Try this:
1. RME is a shareholder of SPNGE. 2. MM and SM are both officers of SPNG and controlling persons of RME. 3. The fact that RME was aware (obviously) of the investigation made that information subject to the selective disclosure rules. 4. So, by law, all shareholders had to be informed.
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