SunEdison Inc. shares surged 35% in premarket trade, after the company’s independent directors and audit committee said they had completed a probe of past accounting and found no material misstatements in historical financials or evidence to support a finding of fraud or wilful misconduct by management, apart from by one former non-executive employee. However, “the independent counsel materials identified issues with the company’s overly optimistic culture and its tone at the top,” auditors and directors said in a regulatory filing. Specifically, the company’s cash forecasting efforts lacked controls and were “overly optimistic and a more fulsome discussion of risks and adjustments with the Board was warranted.” The company also lacked controls regarding cash flow management. The wrongdoing by a former employee related to negotiations over the termination of the acquisition of Vivint Solar Inc. . The employee has been terminated. The directors will now require management to provide greater transparency to the board. Shares have lost 92% of their value in the year so far.
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