NEW YORK--(BUSINESS WIRE)--In the initial press release, dated March 17, 2023, it was mistakenly indicated that an “audit” was conducted by BHG of Mallinckrodt’s “books and records”. Instead, BHG conducted a “review” of Mallinckrodt’s periodic filings with the U.S. Securities and Exchange Commission, which included Form 10-K and Form 10-Q filings.
The updated release reads:
BUXTON HELMSLEY ISSUES LETTER TO MALLINCKRODT PLC. REGARDING $2B CONCEALMENT OF ASSET VALUE DEPRECIATION EXPENSES, RELEASES FULL ANALYSIS TO THE SEC AND U.S. SENATE FINANCE COMMITTEE
The Buxton Helmsley Group, Inc. (together with certain of its affiliates, “BHG” or “we”), the New York City-based investment advisor to clients with financial interests in Mallinckrodt Plc. (“Mallinckrodt” or the “Company”) (NYSE: MNK) today issued an open letter (the “Letter”) to the Company’s board of directors and executives regarding BHG’s extensive investigation, including BHG’s review of Mallinckrodt’s SEC filings (including Forms 10-Ks and Forms 10-Qs) revealed glaring pre-and post-reorganization violations of accounting standards and securities laws.
“Not only does BHG allege violations of securities laws at this Company, but the U.S. Securities and Exchange Commission has already issued Wells Notices over perceived violations of securities laws,” says Alexander Parker, Senior Managing Director of BHG. “Within our open letter to the Company today, we extensively outlay our investigation’s findings of how the Company’s pre-reorganization Commission filings violated GAAP ASC 350, 360, and Regulation S-X. Further, the results of our investigation also shows that the Company has opted to continue their scheme of asset value depreciation concealment, post-reorganization, despite clear evidence of gross overestimation of asset values during the Company’s reorganization proceedings,” said Parker. “This Company has already, with the same Chief Financial Officer running the books pre- and post-reorganization, laid out the Company’s standard for determining the fair value of assets securing capital structure interests, and is apparently continuing such misconduct through failure (post-reorganization) to record billions of dollars in asset value depreciation/impairment expenses, which are evidenced by simply applying their prior-professed internal standard for determining the fair value of assets securing the Company’s capital structure, and – therefore – asset value impairment.”
BHG has released the complete analysis to the U.S. Securities and Exchange Commission’s Division of Enforcement, the Commission’s Office of the Whistleblower, and U.S. Senators Elizabeth Warren and Sheldon Whitehouse of the U.S. Senate Finance Committee.
The full letter to the Company, issued today, in addition to previous letters to/between the Company leading up to the conclusion of BHG’s extensive investigation, may be found at: https://www.buxtonhelmsley.com/mnk/
The full letter to U.S. Senators Warren and Whitehouse of the Senate Finance Committee may also be found at: https://www.buxtonhelmsley.com/mnk/
About Buxton Helmsley: The Buxton Helmsley Group, Inc. is a premier financial service, asset management and securities research firm, providing an array of services to a diversified group of individuals, corporations, trusts, and other entities. The firm’s headquarters are in New York City.