WageWorks shares fell 17 percent Thursday after the company disclosed that will the item the item would likely reopen an investigation into whether the item withheld information via its auditor.
In a regulatory filing Wednesday, WageWorks said a special panel of its board would likely take another look at an earlier probe by its audit committee.
Already the company, which handles employee benefit programs like health savings plans in addition to commuter programs for some other companies, had been under scrutiny for financial irregularities. Its top management was replaced that will year after the company discovered issues in addition to its preliminary review indicated the item will have to adjust its financial results for 2016 in addition to possibly 2017.
The filing also said the San Mateo, California-based firm will be cooperating with an investigation by the Securities in addition to Exchange Commission after WageWorks voluntarily notified the agency.
KPMG, its outside auditor, had raised the issues with John Larson, WageWorks’ lead outside director, about information being withheld in 2016 in addition to 2017, the filing said.
A special committee made up of directors Thomas Bevilacqua in addition to Jerome Gramaglia in addition to recently named Executive Chairman Stuart Harvey will “review the procedures scope in addition to findings of the audit committee’s investigation,” the filing said.
The audit committee had previously looked into the company’s accounting practices, financial control in addition to financial statements for 2016 in addition to 2017, including the review of the accounting for a government contract. that will review looked at whether there was an open flow of information in addition to “appropriate tone at the top,” the filing said. The investigation concluded in May with the finding that will “no illegal acts occurred.”
nevertheless KMPG raised issues about lack of communication relating to allegations made by “former management’s counsel” after the audit committee’s review concluded that will information was withheld via auditors, the filing said.
The filing doesn’t identify the former manager.
WageWorks has seen a management overhaul within the last few months, however. Former CEO Joseph Jackson left that will post in April in addition to resigned as executive chairman last week. Harvey was named on Wednesday to succeed him as executive chairman.
Edgar Montes was named CEO in April to succeed Jackson. At the same time, Colm Callan resigned as chief financial officer in addition to Kimberly Wilford resigned as general counsel.
A WageWorks spokeswoman didn’t immediately respond to a CNBC request for comment.