Virgin Mobile IPO earnings shrouded in scandal; sparks lawsuit
By Will Park on Monday, December 3rd, 2007 at 6:58 PM PST In Announcements, Financial/Corporate News, Services, Virgin Mobile
So, remember when Virgin Mobile went public and reported incredible earnings on their IPO? You know, the IPO where Virgin Mobile banked $412.5 million. Well, it seems that Virgin Mobile’s IPO performance was based on some slightly fudged information. And, by slightly fudged, we mean they misreported their Q3 earnings – which have been revised to reflect a $7.3 Million loss.
The news of Virgin Mobile’s Q3 financial performance revision caused a 14.4% drop in shares. Presumably disgruntled investors have sparked a class-action investigation into Virgin Mobile’s ethics in this matter. But, to Virgin Mobile’s credit, they’ve issued a statement saying that the allegations of purposeful misreporting their financial data are “completely without merit.”
Right, we’re sure the hundreds of millions of potential stock-earnings had nothing to do with the all-too-coincidental financial goof. Good thing this is America where you’re considered innocent until proven guilty.
[Via RCRNews]
