Lenovo Group Denies Q3 2019 Accounting Fraud Accusations with Clear Statement
Reports and videos have surfaced with accusations of accounting fraud on the side of Lenovo Group. The details stemmed from accounting research agency, Bucephalus Research Partnership, with the accusations of fraud specifically for the third quarter fiscal year resulting in the company’s shares dropping by 5.7%.
Just finished our latest report #Lenovo: Its starting to look like fraud. The 3q results had some very worrying signs and that was before the virus took hold. We will put the video up on Youtube tomorrow.
In the quarter which ended on 31st December 2019, Lenovo reported an 11% jump in net income to USD $258 million compared to the previous year. This was better than the average prediction which was set at USD $223 million by seven analysts according to Refinitiv data. This resulted in revenue increasing to a whopping USD $14.1 billion with over 17.9 million PCs sold and retaining the top market share at 25%.
Lenovo Group Denies Fraud
Now, Lenovo Group has finally stepped in with an official statement. The first part acknowledged the existence of the video which accused them of fraud for their third quarter 2019 financial results. They then denied the allegations and pointed out that their financial statements were made in full compliance with all accounting rules.
The Company categorically denies the allegations contained in the Video regarding its financial statements. Further, the Company would like to emphasize that its financial statements were made in full compliance with all applicable accounting rules.
No word on whether Lenovo plans on taking any form of action against these allegations. However, this kind of thing may be done in private so we may not be able to hear about it. We’ll be reporting more on the matter if and when new details surface so stay tuned.
What do you think of this whole situation? Join the discussion below here:
Pokdepinion: If the allegations were truly unfounded, I would be curious as to why they were hurling accusations. There might be a bigger picture here that many of us can’t see just yet.