Results of Operations and Financial Condition. The information contained in Items 4.
It could also serve as an early warning to all publicly listed U. The Canadian company said on February 22 that it would delay filing its Form K until an ad hoc committee of its board has completed a review of accounting matters related to sales through a specialty distributor, Philidor Rx Services.
Plans to proceed with a February 29 earnings call to discuss unaudited fourth-quarter results were revised when Valeant released a management and business update on February 28, announcing the immediate return of CEO Michael Pearson from a two-month medical leave for severe pneumonia, which would postpone reporting of preliminary fourth-quarter results.
That, and the announcement of a previously undisclosed SEC probe prompted a selloff in shares, with the price ending 18 percent lower by the close of trading on February The financial restatement raises numerous compliance issues. First, are all sales being properly booked? And second, are the internal controls adequate to monitor whether or not sales are being booked properly?
If insufficient controls are dealt with internally, material weakness must be disclosed. That investigation, he emphasizes, must cover all sales, not just the narrow issue of it restatement. Taube adds that the investigation must also cover tone from the top—whether management is sending the right message of compliance—and it must measure internal controls, [including] accounting controls, internal audit, [and] whether monitoring roles are filled by the right people.
While some sell-side analysts have shrugged off the restatement as a timing issue, others see signs of more serious concerns for the drug company, such as whether it will be able to maintain high profit margins while reducing prices on many of its products.
Although the amount of revenue being shifted is relatively small, a BMO Nesbitt Burns analyst noted an outsized impact on earnings per share of nearly 3.
That means Valeant is likely to be hard-pressed to achieve comparable levels of profitability generated through Philidor when relying on larger sales volumes through new distribution channels, BMO Nesbitt Burns said.
In addition, the Ad Hoc Committee is continuing its review of the circumstances and appropriate actions to be taken. To date, the company has not determined whether any restatements will be required or whether any control deficiencies constitute material weaknesses.
As a result, Valeant does not expect that it will be in a position to file its Annual Report on Form K within the day extension period provided in Rule 12b b. They need to take their role seriously.
Under Sarbanes-Oxley, the audit committee is able to have separate counsel from corporate counsel, [as well as] separate other professional services. Valeant could consider having its investor communications group weigh the transparency of its audit committee processes, Morris says.Essay about Jiangbo Pharmaceuticals, Inc.
Restatement Analysis - INTRODUCTION In this essay, we will discuss the financial restatements of the K report of Jiangbo Pharmaceuticals, Inc.
We will discuss the underlying accounting issues, in which financial ratios were affected, and . Join the Nasdaq Community today and get free, instant access to portfolios, stock ratings, real-time alerts, and more!
LGND Ligand Pharmaceuticals Incorporated Ligand Pharmaceuticals Inc. Investigated For Securities Fraud By Block & Leviton After Announcing Restatement Of Financial Re.
ramirez, jr. v. hertz global holdings, inc. et al doc. not for publication united states district court district of new jersey civil action no.
in re: hertz global holdings, inc. Jiangbo Pharmaceuticals Inc Company Profile, Corporate Revenues, Growth, Market Size, Analysis, Business Forecasts, Market Share, Metrics, SWOT. Christopher Brophy v.
Jiangbo Pharmaceuticals, Inc., 11th Cir. () - Free download as PDF File .pdf) or read online for free.
We begin our analysis by assessing whether the allegations regarding the scope of the fraud, in the light of Ms. Sung’s position as CFO, can support a strong.