Temenos, a banking software program firm primarily based in Switzerland, has accomplished an ‘impartial examination’ into allegations of monetary misconduct made by US funding analysis agency Hindenburg Analysis in February.
Hindenburg Analysis’s claims, which adopted a four-month investigation, alleged that Temenos engaged in varied types of monetary manipulation to artificially inflate its earnings. It cited findings from interviews with 25 former workers, together with senior executives, revealing what it described as ‘hallmarks of manipulated earnings and main accounting irregularities’.
Following the allegations, Temenos skilled a big setback in its inventory worth, plummeting almost a 3rd – the decline additionally marked the most important single-day drop in Temenos’ buying and selling historical past. In response to those accusations, the firm’s board of administrators shaped a particular committee of impartial administrators to research the claims.
The report
Temenos said that it granted unrestricted entry to firm executives, personnel, information, communications, and all related paperwork to the impartial examiners. Their evaluate analysed the allegations made by Hindenburg Analysis, together with Temenos’ compliance with relevant accounting requirements and rules, its strategic partnerships, its licence renewal practices, the success of its merchandise, its consumer relationships, in addition to inventory buybacks.
The Particular Committee was shaped by Temenos’ board led by the non-executive chairman, Thibault de Tersant. The committee was assisted by Schellenberg Wittmer Ltd, Sullivan & Cromwell LLP, and forensic accountants from Alvarez & Marsal Switzerland LLC (known as the ‘impartial examiners’).
Its subsequent report decided that Hindenburg made a sequence of ‘inaccurate and deceptive allegations about Temenos and its accounting, merchandise, and consumer relationships’. As well as, Hindenburg offered ‘purported ‘info’ about Temenos in a distorted method or out of context’.
Commenting on the announcement, Thibault de Tersant, chairman of Temenos, mentioned: “I’m happy that the impartial examiners have accomplished their evaluate with the complete cooperation and transparency from workers throughout the enterprise.
“The report has discovered that Hindenburg’s Analysis’s allegations have been inaccurate and deceptive. It clearly reinforces the board’s view that Temenos is working a sound enterprise, providing greatest at school merchandise and has strong monetary controls and robust governance oversight.
“Temenos stays absolutely targeted on servicing its shoppers and constructing relationships with its companions. The board is assured that Temenos’ strategic plan and important mass will permit it to proceed to guide this market.”
