‘Significant and sophisticated’ potential fraud uncovered at big data firm
Technology firm WANdisco has suspended its shares on the Alternative Investment Market after it revealed “potentially fraudulent irregularities” that could result in its sales being 60% lower than expected.
The Sheffield-based company, led by Dave Richards, had been enjoying a transformational year, with its share price quadrupling to take its market value close to £1bn.
But it has now warned there is a “material uncertainty” regarding its overall financial position and significant going concern issues.
An investigation led by Richards and the company’s CFO Erik Miller has found “significant, sophisticated and potentially fraudulent irregularities with regard to received purchase orders and related revenue and bookings, as represented by one senior sales employee”.
In a statement, WANdisco said: “The board now expects anticipated FY22 revenue could be as low as $9m and not $24m as previously reported.
“In addition, the company has no confidence in its announced FY22 bookings expectations.
“As a result, the company has requested that its shares be suspended from trading on AIM while it conducts an investigation with its external legal and professional advisers into the nature of this activity and its true financial position.”
On Monday the dual UK and US-headquartered technology company had confirmed reports it was in the “early stages” of exploring a listing on the New York Stock Exchange.
