Curon Medical
This article was originally published in The Gray Sheet
Executive Summary
Ongoing internal investigation uncovers improperly recognized revenues in Q4 2003 and Q1 2004 of "less than $75,000 and $125,000, respectively," the gastrointestinal device firm reports. The company cites inappropriate offering of rights for product return and exchange, and a manufacturer rep's improper sales certifications as reasons for the errors. Curon dismissed six sales staffers as a result. In addition to a two-day stock trading hiatus Aug. 17-19 as Nasdaq sought additional information, the investigation will delay filing of the firm's 10-Q second quarter report. Curon also plans an accounting adjustment relating to stock warrants that will cut its Q1 2004 net loss by $450,000-$500,000...