Accounting & Tax

Sales Practices under Scrutiny at Myers

The practices related to the invoicing of certain international sales and to sales made to customers in certain international jurisdictions.
Stephen TaubJuly 20, 2004

Myers Industries Inc. announced that its believes the company’s international tire-products distribution business has violated U.S. and possibly foreign laws.

The Akron-based company reported the matter to the Department of Justice and the Securities and Exchange Commission following a preliminary investigation into practices related to the invoicing of certain international sales and to sales made to customers in certain international jurisdictions.

Myers Industries, which manufactures polymer products for industrial, agricultural, automotive, commercial, and consumer markets, noted that the business practices involved a limited number of customers and were immediately terminated.

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The investigation, which is ongoing, is being conducted by outside counsel under the authority of the company’s audit committee. The company added that it believes the practices had no effect on previously filed financial statements and that the final findings will not lead to any restatement of reported financial results.

The company also said it will seek to settle any enforcement issues arising out of the discontinued practices. At this time, though, Myers Industries noted that it cannot reasonably estimate its potential liability and so has not recorded any provision for settlement.