UNITED STATES OF AMERICA

Before the

SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934 

Release No. 96010 / October 7, 2022

ADMINISTRATIVE PROCEEDING

File No. 3-20945

In the Matter of

Surgalign Holdings, Inc. and 

Robert P. Jordheim,

Respondents.

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EXTENSION ORDER

The Division of Enforcement (“Division”) has requested an extension of time until 

October 7, 2023 to submit a Proposed Plan of Distribution under Rule 1101(a) of the 

Commission’s Rules on Fair Fund and Disgorgement Plans, 17 C.F.R. § 201.1101(a).

On August 3, 2022, the Commission issued an Order Instituting Public Administrative 

and Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933, Sections 

4C and 21C of the Securities Exchange Act of 1934, and Rule 102(e) of the Commission's Rules 

of Practice, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order 

(the “Order”)1against Surgalign Holdings, Inc. (formerly known as RTI Surgical Holdings, Inc.

and RTI Surgical, Inc.) (“RTI”) and Robert P. Jordheim (collectively, the “Respondents”). In the 

Order, the Commission found that from 2015 through 2019, RTI shipped orders weeks or months 

before its customers had originally requested delivery, thereby pulling sales forward from future 

quarters, to address projected quarterly revenue shortfalls. In some instances, RTI did so after 

 

1

 Securities Act Rel. No. 11088 (Aug. 3, 2022).
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requesting and obtaining customer permission; in other instances, RTI shipped orders early 

without customer approval and then prematurely recognized revenue for the sales. In multiple 

quarters, RTI would not have met its revenue guidance without these undisclosed pull-forwards. 

RTI and its former senior management, including its CFO until September 2017, Jordheim, did 

not disclose to investors that RTI’s apparent success at achieving its revenue guidance resulted 

from its reliance on pull-forwards, and they did not disclose the known uncertainty that this 

practice created for RTI’s future revenue streams. In 2020, RTI issued a restatement to correct, 

among other things, its premature recognition of revenue, in violation of generally accepted 

accounting principles (GAAP), for orders shipped early to customers without their approval. In 

total, the Commission ordered the Respondents to pay $2,075,000.00 in civil money penalties to 

the Commission. The Commission also created a Fair Fund, pursuant to Section 308(a) of the 

Sarbanes-Oxley Act of 2002, so the penalties paid can be distributed to harmed investors (the 

“Fair Fund”).

The Fair Fund consists of the $2,075,000.00 paid by the Respondents. The Fair Fund has 

been deposited in an interest-bearing account at the U.S. Department of the Treasury’s Bureau of 

the Fiscal Service, and any accrued interest will be for the benefit of the Fair Fund.

In its request for an extension of time, the Division states that additional time is needed to 

complete the fund administrator solicitation and appointment process, develop the distribution 

methodology, and prepare the proposed plan of distribution. Additionally, the Division is 

awaiting the outcome of the related case SEC v. Brian H. Hutchison, 22-cv-2296 (D.D.C.), 

which may provide additional distributable funds.
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Accordingly, for good cause shown, IT IS HEREBY ORDERED that the Division’s 

request for an extension of time until October 7, 2023 to submit a Proposed Plan of Distribution 

is granted. 

For the Commission, by the Division of Enforcement, pursuant to delegated authority.2

Vanessa A. Countryman

Secretary 

 

2

 17 C.F.R. § 200.30-4(a)(21)(i).