Overstock.com, the online seller of excess inventory products, has been notified by the US Securities & Exchange Commission of a second probe into its history of financial restatements. Overstock said the latest scrutiny involved the restatement of financials in 2006 and 2008, as well as "other matters".
In 2006, the SEC subpoenaed the company, asking for information related to accounting policies, targets, projections, estimates and restatements. That investigation was concluded in 2008, with the SEC deciding not to take any action against Overstock or its officers.
Overstock said it intends to fully cooperate with regulators, with President Jonathan Johnson adding that the new probe will take a second look at the company’s restatements from 2006. Johnson said those restatements related to the way the company accounted for expenses on inbound freight, and that the restatements ended up improving earnings.
CEO Patrick Byrne added, “We are disappointed, given the extensive public disclosures Overstock has previously made, that the SEC, given all of the challenges it faces, has apparently chosen to expend time and resources on another investigation of Overstock”.
Overstock.com sells excess inventories of clothing, home products and other goods.
Namnews - Friday 18th September 2009
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