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Symantec Shares More Information on Internal Investigation

Symantec shares gained nearly 10 percent on Monday in anticipation of a conference call that promised to provide more information regarding the internal investigation announced by the company last week.

Symantec shares gained nearly 10 percent on Monday in anticipation of a conference call that promised to provide more information regarding the internal investigation announced by the company last week.

Along with its financial results for the fourth quarter and full year, Symantec told investors last week that the Audit Committee of the Board of Directors had launched an investigation as a result of concerns raised by a former employee.

The company initially did not share any additional information, except that the Securities and Exchange Commission (SEC) had been notified and that the probe would likely prevent it from filing its annual 10-K report with the SEC in a timely manner.

Symantec shares dropped roughly 20 percent to less than $24 after the announcement was made on Thursday, and on Friday shares dove 33 percent, reaching just over $19.

A conference call announced for Monday afternoon helped the company gain nearly 10 percent, closing at $21.40.

While many expected Symantec to provide details on its internal probe, the company did not answer any questions on the matter. A statement published by the company does, however, reveal that the investigation is related to “concerns raised by a former employee regarding the Company’s public disclosures including commentary on historical financial results, its reporting of certain Non-GAAP measures including those that could impact executive compensation programs, certain forward-looking statements, stock trading plans and retaliation.”

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The company says it cannot predict the duration of the investigation or the outcome, which could have an impact on financial results and guidance.

The cybersecurity firm says it does not anticipate a material adverse impact on its historical financial statements.

In response to news of the internal probe, investor rights law firm Rosen Law Firm announced the preparation of a class action to recover losses suffered by Symantec investors. Rosen says it’s investigating allegations that Symantec “may have issued materially misleading business information to the investing public.”

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Related:Tenable, Cylance Disclose Revenue Metrics

Written By

Eduard Kovacs (@EduardKovacs) is senior managing editor at SecurityWeek. He worked as a high school IT teacher before starting a career in journalism in 2011. Eduard holds a bachelor’s degree in industrial informatics and a master’s degree in computer techniques applied in electrical engineering.

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