American Classic Voyages (AMCV) misled investors by filing an inaccurate quarterly report for its first quarter of 1999, according to the Securities and Exchange Commission (SEC). AMCV improperly capitalized advertising costs, instead of expensing those costs as it did in previous quarters, which "substantially improved reported results," the SEC said. AMCV understated its net loss for the period by 29 percent, and understated its SG&A expenses because of the inaccurate capitalization and deferral to later quarters of certain advertising costs. The SEC asserted that AMCV failed to disclose its altered accounting treatment in its 10-Q.

As part of the SEC findings, AMCV has consented to cease and desist from committing violations of the SEC Act. No fine was imposed, and AMCV did not admit or deny the SEC findings.

AMCV's shares hit at an all-time low of $2.70 on June 27, a drop of 88 percent from their 52-week high of $21.81. At press time (June 28), AMCV was trading at $3.04.