|  | | 2004 News and Press Releases | | |
HEADLINE NEWS:
Lawyers Clear Krispy Kreme Of Misconduct
Staff Writer
General Financial/ Business News . December 16, 2004
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EXCERPT: Doughnut maker Krispy Kreme said Thursday that lawyers have concluded for a second time that no one at the company did anything intentionally improper in its acquisition of a Michigan franchise. In its latest SEC filing, the company said it continues reviewing other errors and proposed adjustments that could result in the company's net income for the year being trimmed by as much as 7.6 percent, however….Krispy Kreme is under a formal SEC investigation of its franchise buybacks and earnings outlooks and is facing shareholder lawsuits. The company has created a special committee of two new independent directors to investigate all those matters, Krispy Kreme said, and that committee could conclude that the company's financial statements need to be changed.
The company said Wednesday that it will not be able to file its overdue quarterly 10-Q report until it finishes reviewing "franchise matters," including the company's consolidation of KremeKo Inc., which develops Canadian stores for Krispy Kreme. |
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