Long-Term Capital Market Consequences of Financial Restatements

Key Findings Computing the cumulative average abnormal return (CAAR) to document market reaction after a financial restatement, we found no significant abnormal returns in either the first 30-day window following the date of restated financials or after a 90-day window for … Continue reading

Ollie’s Bargain Outlets’ Elimination of Critical Accounting Disclosure Draws SEC Attention

Retailer Ollie’s Bargain Outlet Holdings, Inc. [OLLI] recently drew the SEC’s attention when the company said it would eliminate all of its critical accounting estimates. The SEC requires companies to make critical accounting disclosures when a firm must make judgment … Continue reading

SEC Registrants with Poor Cyber Controls

On October 16, 2018, the SEC’s Division of Enforcement issued an investigative report regarding cyber-related fraud’s effect on public company internal controls. The report reviewed nine cases in which public companies’ electronic communications were used to perpetrate fraudulent payments. All … Continue reading

Five Years of Restatements Following Internal Investigation for MiMedx Group, Inc.

On June 7, 2018, MiMedx Group, Inc. [MDXG], a biopharmaceutical company, announced that the Company is going to restate previously filed financial statements for years 2012 through 2016, and the first three quarters of 2017. A financial restatement of this … Continue reading