Beazer Homes, which last year settled US allegations that it misstated earnings, said its chief executive officer may be sued by regulators to recover incentive pay he collected.

The Securities and Exchange Commission sent CEO Ian J McCarthy a Wells notice on 13 Nov saying the agency may file a civil suit against him, according to a company filing today. Beazer wasn’t named in the notice.

The potential lawsuit would invoke a so-called 'clawback' provision in the Sarbanes-Oxley Act, which can require CEOs and chief financial officers to refund bonuses or other incentive- based or equity-based compensation and profits from stock sales following a financial restatement, even if they personally committed no wrong doing.