Welbilt, Inc. (WBT) Accused of Implementing Ineffective Internal Control Over Financial Reporting
According to the complaint against the company's officers and directors for alleged violations of the Securities Exchange Act of 1934 between February 24, 2017 and November 2, 2018, for nearly two years, Welbilt, Inc. (WBT) represented that its financial statements were accurate and that its internal controls were effective. It therefore came as a surprise to investors when Welbilt admitted that it lacked effective internal control over financial reporting. On November 5, 2018, Welbilt announced that certain of its financial statements should not be relied on because the company incorrectly recorded the tax basis of foreign subsidiaries and the amortization of their intangible assets. As a result, Welbilt had understated its U.S. tax liability. On this news, Welbilt's stock lost more than a quarter of its value to close at $14.26 per share on November 5, 2018, and continues to decline.
Welbilt, Inc. (WBT) Shareholders Have Legal Options
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