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Avaya Board Probes Whistleblower Complaint, Won’t File Annual Report On Time
Shares are down more than 90% since DuDil flagged revenue recognition trouble prior to the Board launching an investigation into potential control deficiencies.
November 30, 2022
The ethics and compliance program at Avaya (AVYA), a provider of software that runs call centers, is lacking and prevented certain whistleblower complaints from being appropriately logged and communicated to management. Though this particular whistleblower complaint— the content of which was not disclosed— was not substantiated, the Audit Committee has launched an internal investigation into other matters which may result in the identification of control deficiencies other than the whistleblower issue.
The company disclosed the financial statements it filed with the SEC November 22, 2022 are no longer reliable and that it would not be able to file its annual report on time. The late filing notice indicated Avaya is investigating previously disclosed impairment charges.
Avaya has less than a month to complete the audit of its financial statements before it runs afoul of debt covenants associated with its ABL facility.
In January, DuDil warned Avaya inflated 2021 sales by recognizing revenue that should have been recognized in the prior two years.
Shares have fallen 95.4% since.
Related: CSCO, MSFT, ZM, GOOGL, FIVN, TWLO, VG
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