A new investigation of accounting practices at copier group Xerox yesterday undermined its shares and recent momentum, just as it had appeared to have allayed concerns about its books.
Shares of Xerox fell almost 13 per cent, erasing almost six weeks of gains. The stock was the one of the top 10 largest percentage loser on the New York Stock Exchange.
Xerox said the US attorney's office in Bridgeport, Connecticut, was investigating its past accounting practices.
The company, which paid $10 million (€10.2 million) to the Securities and Exchange Commission (SEC) five months ago to settle charges that it manipulated its financial results, said it believes the new probe concerns the same matter.
Xerox declined to comment on a Wall Street Journal report that said the Federal Bureau of Investigation has questioned Mr James Bingham, a former assistant treasurer at Xerox.
The report, citing unnamed sources, said the SEC had told certain people, including current Xerox treasurer Mr Greg Tayler, that they could face civil charges.
Xerox said it would cooperate fully with the US attorney's investigation.
The development comes almost two months after Xerox reported a surprise second-quarter profit, and appeared to have closed the door on years of federal accounting probes, which led to the penalty and restated results. - (Reuters)
