An investigation on behalf of investors of Atos SE (OTC: AEXAY) shares over potential securities laws violations by Atos SE and certain of its directors and officers in connection with certain financial statements was announced.
The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Atos SE (OTC: AEXAY) concerning whether a series of statements by Atos SE regarding its business, its prospects and its operations were materially false and misleading at the time they were made. France based Atos SE provides digital transformation solutions and services worldwide.
Atos SE declined from over $11.58 billion in 2019 to over $11.18 billion in 2020, and that its Net Income declined from over $3.39 billion in 2019 to $550 million in 2020.
On April 1, 2021, Atos SE issued a press release revealing that its auditors issued a “qualified opinion . . . as to two US legal entities representing 11% of 2020 consolidated revenue that require additional diligences.” Specifically, the auditors identified “internal weaknesses over financial reporting process and revenue recognition in accordance with IFRS 15 leading to several accounting errors, as well as risk of override of controls in this respect.” The Company stated that it had hired external firms to conduct an investigation and that, due to those procedures, the auditors had not been able to obtain sufficient evidence that the Company’s financial statements were free of material misstatements within the necessary timeframe.
Shares of Atos SE (OTC: AEXAY) declined from $18.67 per share on January 4, 2021, to as low $13.05 per share on April 5, 2021