SEC action results in no fines or penalties for LSB

Washington-LSB Industries Inc., the owner of El Dorado Chemical Co., has reached an agreement with the U.S. Securities & Exchange Commission pertaining to a 2004 change in inventory accounting from LIFO to FIFO involving approximately $500,000. As a result, LSB had to restate its 2004 results. Under the SEC order, LSB has agreed not to violate Sections 13(a) and 13(b)(2)(A) of the Securities Exchange Act of 1934, as amended, and Rules 13a-1 and 13a-13 thereunder. LSB consented to the order without admitting or denying any wrongdoing. There are no findings of securities fraud, fines, or penalties involved. In addition, Jimmie D. Jones, LSB’s former principal accounting officer and controller, who resigned from those positions on Aug. 15, 2008, but continues to serve as LSB’s senior vice president and treasurer, has consented to the order on very similar terms. However, he has consented not to appear or practice before the SEC as an accountant, subject to submitting application for reinstatement two years after the date of the final order.