Parexel, one of the world’s largest CROs, is urgently looking into what it is calling an “incident of misappropriation of corporate funds by an employee” as it looks to let the SEC know just what has gone missing.
In its SEC 12b-25 filing this week, the firm said it would be late submitting its 10-K performance form as it has found out that one of its employees, who works “in one of the Company’s international operations,” has been misusing its money.
More details were not at hand, and while Parexel ($PRXL) said the amount was thought “not to be material,” it warns that there “can be no assurance in this regard until the company completes its review.”
This is now ongoing, and it will file its now late 10-K when it has got the bottom of what has happened and how much money is involved.
“The company expects to file the 2016 Form 10-K as soon as reasonably practicable, and, at this time, the company anticipates that it will be able to do so within the extension period of 15 calendar days.”
The company saw a major drop in its share price on the news, falling from a year high of more than $71 a share on Tuesday to $67 the next day.