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Charlotte-based Swisher Hygiene filed its first revised financial reports Wednesday, showing larger losses than previously reported, and the company also disclosed it has been contacted by law enforcement officials seeking information about its business.
A former employee raised concerns over Swisher’s accounting practices in March 2012. The company’s board of directors started an internal audit, and concluded that financial statements for the previous year were erroneous and shouldn’t be relied on anymore.
Swisher, which provides cleaning and sanitation services for businesses, faces deadlines this month to update its financial statements or be delisted from the Nasdaq stock exchange.
The amended report filed Wednesday covers the quarter ending March 31, 2011. The company said its net loss was actually just under $6 million for the quarter, nearly double the originally reported $3.2 million.
Swisher also said it has been contacted by officials from the Atlanta office of the Securities and Exchange Commission and the U.S. Attorney’s Office for the Western District of North Carolina, based in Charlotte. The company is providing information “on a voluntary basis,” according to the filing.
“Any action by the SEC, the U.S. Attorney’s Office or other government agency could result in criminal or civil sanctions against the Company and/or certain of its current or former officers, directors or employees,” Swisher warned.
Following the initial financial review, Swisher fired three employees, including the chief financial officer. Chief executive Steve Berrard resigned, though he remained a board member. A senior vice president and replacement CFO also left the company.
Swisher still must file several more revised quarterly reports and an annual report. The company also faces a lawsuit from shareholders who say the company artificially inflated its stock.
Swisher’s stock closed at $1.41 a share Tuesday, but fell 11 cents, or about 8 percent, in trading after the market closed.
