New Jersey Law Journal
July 31, 2006
Martin C. Daks interviewed Max Crane, Deputy Managing Partner of the Firm, about a recent phenomenon among public companies, i.e. late filings. Crane stated: "Sometimes the company is simply caught short by new accounting or other regulations." He gave an example of a company that used a particular accounting treatment for 5 years with no problem. Its outside auditor, given a new set of regulations, suggested that a new accounting treatment was required. Because of that, "the company's previous guidance had to be revisited; and the company also had to disclose the change and restate prior period financials." The company notified the SEC early and obtained an extension. "The company wasn't trying to do anything wrong, but got caught up anyway. Even if a company has the best intentions, a delinquent filing may still make the market scratch its head."