Myers: Investigation turns up possible international business violations
Myers Industries Inc. released a statement last week announcing that "following a preliminary investigation of certain international business practices" in its tire products distribution business that are believed to be in violation of United States and possibly foreign laws, it had reported the matters to the U.S. Department of Justice and the Securities and Exchange Commission.
According to the company, the practices, which involved a limited number of customers, related to the invoicing of certain international sales, and to sales made to customers in certain international jurisdictions.
In an official release, Myers said the following:
"The company believes that the practices in question had no effect on previously filed financial statements, and that the final findings from the investigation will not lead to any restatement of reported financial results. The business practices were immediately terminated.
"The company's investigation, which is not yet completed, is being conducted by outside counsel under the authority of the Audit Committee of the company's board of directors.
"The company will seek to settle any enforcement issues arising out of the discontinued practices. At this time, the company cannot reasonably estimate its potential liability and has, therefore, not recorded any provision for settlement.
"Until the company’s investigation and discussions with government agencies conclude, the company will have no further comment."
Myers Industries' stock was selling for $13.54 a share at the close of the New York Stock Exchange on July 16. That compares to a 52-week high and low of $14.89 and $9.40, respectively.