Birmingham, AL-based Hanger on June 7 filed an 8-K form with the Securities and Exchange Commission (SEC) reporting the results of an internal investigation. The form, which companies must file to announce major events that shareholders should know about, details the recent findings of Hanger’s internal audit committee.
The committee concluded it is “more likely than not” that certain former employees and officers, including its former CFO and chief accounting officer, engaged in inappropriate accounting practices. It also found certain former senior managers created an inappropriate “tone at the top” that led to weakness in Hanger’s overall environment, though the committee reported Vinit K. Asar, Hanger’s current CEO, was not involved in the inappropriate practices.
According to Asar, Hanger has taken steps to address issues the investigation uncovered, including hiring a new CFO, principal accounting officer, and corporate controller; strengthening accounting processes and controls; hiring additional, “highly qualified” employees and consultants; completing compliance training; and investing in infrastructure and systems “to reduce reliance on manual processes.”