Governance

Company Disputes Whistle-Blower’s Claims

Beckman Coulter's audit committee found that the former employee's charges of accounting violations weren't substantiated.
Stephen TaubJuly 18, 2006

Beckman Coulter, Inc. reported that its audit committee concluded that a whistle-blower’s charges of accounting irregularities are unfounded.

The medical-testing equipment manufacturer announced in early May that its audit and finance committee was overseeing an investigation into claims made by a former employee concerning certain accounting and financial reporting issues.

The committee, which hired lawyers and an outside forensic accounting firm to conduct the inquiry, concluded that the former employee’s charges weren’t substantiated. No adjustment to the company’s financial statements was required, according to the committee.

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In May, Beckman Coulter reported that the ex-employee claimed in an April 17 letter that his termination, which the company contends was part of its restructuring, stemmed from certain accounting and financial reporting issues he claims that he brought to his supervisor’s attention.

Those allegations involved the obsolescence of about $25 million of inventory, accounting for returned equipment under lease, and disclosure of causes for change in expenses, according to a press release issued at the time.

Beckman then delayed the filing of its first quarter report, which it issued on Monday along with the committee’s conclusion.