May 1, 2004 |
Shares of Global Crossing Ltd., the fiber-optic network operator that exited bankruptcy protection in December, fell 29% on Friday after Grant Thornton withdrew its audits for the last three years. Global Crossing shares tumbled $2.85 to $7.15 on Nasdaq. The stock has fallen 77% this year. Without audited financial results, the shares are likely to be delisted from Nasdaq, said Igor Volshteyn, an analyst at Tejas Securities.
January 21, 2004 |
The U.S. Securities and Exchange Commission said Tuesday that it had brought an enforcement action against accounting firm Grant Thornton in connection with a 1998 audit of MCA Financial Corp., a bankrupt Michigan mortgage banking company. The SEC accused Grant Thornton, which jointly audited MCA's 1998 financial statements with another firm, of aiding and abetting in "MCA's violations of the antifraud and reporting provisions of the federal securities laws."
January 13, 2004 |
Adecco, the world's largest employment agency, said it couldn't close its books for 2003 because of possible accounting problems, causing its stock to plummet Monday. The Swiss company could not predict when its 2003 results would be available. That sent frightened investors rushing to sell. Analysts lowered their recommendations amid fears of an accounting scandal like the one that has enveloped Italian food group Parmalat. Shares of Adecco closed down 35% on the Zurich, Switzerland, exchange.
January 9, 2004 |
Italian prosecutors widened a fraud investigation into dairy group Parmalat on Thursday to two Deloitte auditors and a former Bank of America Corp. executive. As investigations into suspected crimes spread, Parmalat fired its second set of auditors in 24 hours and accountants Grant Thornton International expelled its Italian unit.
January 7, 2004 |
Mortgage lender Countrywide Financial Corp. on Tuesday fired Grant Thornton as its independent auditor after 30 years and chose KPMG, one of the top four global accounting firms. The decision by Countrywide, one of Grant's biggest audit clients, came after a nine-month review process and was based on the company's need for a larger auditing firm, said Michael Dougherty, chairman of Countrywide's Audit and Ethics Committee. The loss of a major U.S.
January 3, 2004 |
Investigating judges questioned two of Parmalat's jailed former finance directors, an outside auditor and an outside lawyer Friday as the corruption probe intensified into the dairy company's missing billions. Investigators are trying to trace the roots of Parmalat's spectacular fall -- a case that has been called "Europe's Enron" because both firms allegedly used related companies to hide losses.