DIS shares gave up the day’s gains into the close and into after-hours following reports from a whistleblower that the company had materially overstated revenue for years.
MarketWatch reports that Sandra Kuba, formerly a senior financial analyst in Disney’s revenue-operations department who worked for the company for 18 years, alleges that employees working in the parks-and-resorts business segment systematically overstated revenue by billions of dollars by exploiting weaknesses in the company’s accounting software.
Kuba said she has met with officials from the SEC on several occasions to discuss the allegations.
The reaction was swift but not dramatic…
According to the report, a spokeswoman for the SEC declined to comment while a Disney spokesperson said the claims had been reviewed and were found to be “utterly without merit.”
via ZeroHedge News https://ift.tt/2Z5rWKc Tyler Durden