As the internal accounting probe of the sales numbers of Alexion Pharmaceuticals, Inc. nears completion, its CEO David Hallal and CFO Vikas Sinha have unexpectedly resigned. Mr. Hallal for personal reasons and Mr. Sinha to pursue other opportunities. Wonder what the personal reason and other opportunities are!
What perfect timing! I am most intrigued now what the results of the accounting probe will be.
The fight between HP and Autonomy saw the former autonomy CFO, Sushovan Hussain, being charged with accounting fraud by a federal grand jury in the US. The charges against Hussain alleged that he made false and misleading statements about Autonomy’s finances, put fraudulent entries into the company’s books, issued false and misleading quarterly and annual reports, and pressured and paid off people who raised complaints about the firm’s financial practices and performance.
The war between HP and Autonomy’s former management started when HP found issues in the Autonomy’s financials a few months after they bought the company for billions of dollars. More specifically; HP bought Autonomy in Q4 2011 for £6.7 billion, but in 2014 HP revised the 2010 accounts for Autonomy reducing the revenue and profit by up to 81%. HP took a £4 billion hit when they wrote off their investment in Autonomy.
The interesting thing in the deal was that all of the Big 4 firms were directly or indirectly involved in the transaction. Deloitte was the auditor for Autonomy and signed off on their 2010 financials, KPMG did the due diligence on Autonomy, PwC carried out the report into the takeover and finally EY are HP’s auditors and signed off on the restated financials. So in this case not sure which one of the audit firms are to be blamed! Maybe its a group effort.
Weatherford International announced the sudden exit of it’s CEO Bernard Duroc- Danner. The move though sudden is not unexpected. Recently the company settled with SEC on deceptive accounting charges. The company had overstated its results to meet its earlier announced projections and analyst’s expectation.
In light of that, it would make sense for the company’s CEO to leave, wouldn’t it?