Summary
- On November 4th, 2016 the CEO of LCI (Arthur Bedrosian) stated that the Board of Directors had mandated an internal investigation into allegations of price fixing.
- The results of that investigation were never made public, nor was which outside law firm conducted it, but the CEO did state that the firm cleared everyone of wrongdoing.
- From 11/04/16 forward, investments in the stock have been based off of the representation (made by the CEO) that the BOD had ordered an outside investigation in to the claims.
- Now that two current employees, along with the company, have been named as defendants in two separate suits the company has no 8k to discuss why the investigation failed investors.
- In my opinion the audit committee needs to launch an independent investigation into the claims being made about prior management and current employees.
On the fiscal Q1 call for fiscal year 2017 (held on Nov 4th, 2016) LCI's then CEO, Arthur Bedrosian made the following statement.
Source: LCI Earnings Transcript (11/4/16)
