UPDATE 1-Hudson Highland gets 'Wells Notice' in SEC probe

May 15 (Reuters) - Hudson Highland Group Inc (HHGP.O) said on Friday it had been notified by U.S. regulators that a civil complaint could be filed against it for alleged failures to properly disclose its North American state sales tax liability in certain financial statements.

In a filing with the U.S. Securities and Exchange Commission (SEC), Hudson said its Chief Financial Officer also received a 'Wells Notice' alleging that he aided and abetted such violations.

In a statement, the company and its CFO denied any such violation.

The company said the SEC allegation is related to its quarterly reports for the quarters ended June 30, 2006, Sept. 30, 2006 and March 31, 2007 and the annual report for the year ended Dec. 31, 2006. (Reporting by Amulya Nagaraj in Bangalore, Editing by Ratul Ray Chaudhuri)