NUREMBERG, Germany - VIA optronics AG (NYSE:VIAO), a supplier of interactive display systems, disclosed the results of an internal review by its Supervisory Board regarding the company's compliance procedures and related incidents. The review, which covered the period from January 1, 2017, to December 31, 2022, identified significant deviations from compliance practices primarily involving the company's former CEO, Jürgen Eichner.
The investigation, conducted by BDO AG Wirtschaftsprüfungsgesellschaft and DLA Piper UK LLP, found that Eichner and another employee failed to adhere to company policies and guidelines. These failures included improper expense recording and reimbursements, personal use of company credit cards, unauthorized bonus payments, and other unapproved transactions. The identified discrepancies, potentially constituting fraud or embezzlement, could lead to legal claims for reimbursement of a minimum of between €300,000 to €500,000, plus consequential damages.
As a result, on February 23, 2024, the Supervisory Board terminated Eichner's service agreement for cause and revoked his appointment from the Management Board, citing material violations of fiduciary duties and a subsequent loss of trust.
This announcement follows an earlier disclosure on November 17, 2023, of a delay in filing the company's form 20-F for the fiscal year 2022 with the U.S. Securities & Exchange Commission. The NYSE had granted VIA an extended trading period through May 16, 2024, to file the delayed report. VIA's CEO, Roland Chochoiek, expressed the company's commitment to addressing the findings and stated that finalizing the delayed 2022 20-F is now a priority.
This report is based on a press release statement from VIA optronics AG.
InvestingPro Insights
As VIA optronics AG (NYSE:VIAO) navigates the aftermath of its internal compliance review, investors and analysts are closely monitoring the company's financial health and market performance. Recent data from InvestingPro shows a market capitalization of 19.03 million USD, reflecting the size of the company in the current market. Moreover, the company's stock price has experienced significant volatility, with a 73.58% decline in the one-year price total return as of Q1 2024, indicating a challenging period for the company's valuation.
An InvestingPro Tip highlights that analysts do not expect VIA optronics AG to be profitable this year, which could be a concern for potential investors considering the company's recent compliance issues and management changes. Additionally, the company's operating income margin for the last twelve months as of Q4 2023 stood at -3.07%, further emphasizing the operational challenges faced by VIA.
Investors seeking more in-depth analysis and additional InvestingPro Tips for VIA optronics AG can explore the range of insights available at https://www.investing.com/pro/VIAO. There are a total of 5 additional InvestingPro Tips to help investors make more informed decisions. For those interested in a comprehensive investment tool, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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