Co-founder Richards quits as WANdisco investigation continues
David Richards, co-founder and chief executive. and chief financial officer Erik Miller have resigned from the WANdisco board and leadership team, effective today.
They said their resignations are unrelated to findings of an interim report into false purchase orders and sales bookings by independent investigators FRP Advisory. WANdisco alerted the London Stock Exchange to potentially fraudulent purchase and sales orders on 9 March, when it said its 2022 revenue forecast might be reduced from $24m to as low as $9m.
FRP’s interim report has now confirmed purchase orders worth $15m and sales bookings of $115m in 2022 are false, and that WANdisco’s full-year revenues for 2022 should have been $9.7m, and that unaudited bookings should have been $11.4m, rather than $127m. The results of the independent investigation to date continue to support the initial view that the irregularities are as a result of the actions of one senior sales employee.
FRP Advisory is continuing to pursue the investigation to reach a conclusion, and WANdisco will issue further updates on the investigation and the company’s plans going forward as appropriate.
Trading in WANdisco shares has been suspended since the 9 March announcement, but the firm has operated and traded as usual. The firm said in a statement to the London Stock Exchange this morning that its efforts to progress work streams, raise the share suspension and position itself for long-term growth, assisted by management consultants Alvarez and Marsal, would be best carried out under new leadership.
Accordingly Ken Lever, appointed interim chairman last week, will become executive chairman pending the conclusion of a formal process to appoint a new chief executive, which will commence shortly. Ijoma Maluza has been appointed interim chief financial officer, effective from 11 April. Ijoma was previously the chief financial officer of Blue Prism plc, a leader in intelligent automation software.
Executive chairman Kenneth Lever said, “Over the years David and Erik have contributed significant time and effort to establishing and developing WANdisco. They remain meaningful shareholders in the business and continue to believe in the long-term, successful future for this Company and its unique technology.”
David Richards said, “I am sad to be leaving WANdisco after 18 extremely enjoyable years. I remain a passionate supporter and significant shareholder of the company.”
