The Financial Conduct Authority (FCA) has launched an investigation into struggling tech company Wandisco PLC (AIM:WAND) related to a potential "material misstatement" of its true financial position.
The probe comes after an internal examination uncovered over $115 million in unaccounted-for bookings. WANdisco stated that it is cooperating with the FCA and continuing to support the independent investigation by FRP Advisory.
Last month, Wandisco unexpectedly informed the stock exchange that it was revising its 2022 guidance and investigating its "true financial position."
It said it had identified "significant, sophisticated and potentially fraudulent irregularities" related to revenue a senior sales employee booked.
This development led to uncertainty regarding the company's overall financial position.
After reaching a $1 billion market cap that prompted it to consider a US listing, WANdisco's fortunes quickly changed, resulting in the resignation of its CEO and CFO and the suspension of its shares from trading on the London Stock Exchange.