NEW YORK--(BUSINESS WIRE)--The Buxton Helmsley Group, Inc. (together with certain of its affiliates, "BHG" or "we"), the New York City-based investment advisor to clients with financial interests in Mallinckrodt Plc. ("Mallinckrodt" or the "Company") (NYSE: MNK), today issued an open letter (the "Letter") to the Company's Board of Directors, given the Company's continued failure to make required write-downs of asset values where expenses are evidenced, in apparent violation of GAAP ASC 350/360 and Regulation S-X, within its May 9, 2023, Form 10-Q filing with the U.S. Securities and Exchange Commission (the "Commission").
On March 17, 2023, BHG issued a public report to the Company's Board of Directors (also delivered to the Commission and U.S. Senate Finance Committee), which extensively outlaid and alleged an evidenced multibillion-dollar accounting and securities fraud scheme historically and presently occurring at the Company; uniquely, "strong[ly] evidence[d]" by the Company's own prior-professed standard of determining the fair value of assets securing capital structure interests. Within that March 17, 2023, public report issued by BHG, it was thoroughly laid out how the Company had not only arguably been committing these violations of accounting standards and securities laws long before the Company's Chapter 11 bankruptcy filing on October 12, 2020, but opted to apparently merely resume the scheme of concealing asset value depreciation expenses from the Company's Commission-filed financial statements upon its emergence from reorganization proceedings, in violation of GAAP ASC 350/360 and Regulation S-X.
Since BHG's March 17, 2023, public report, the Company has neither denied nor rebutted the "strong[ly] evidence[d]" (the Company's own prior-professed evidentiary standard) apparent multibillion-dollar accounting and securities fraud scheme laid out therein.
Within the Letter today, BHG also highlighted how the Company has now corrected the inaccurate representations related to the licensing/credentials of Chief Financial Officer Bryan Reasons, but only after BHG was forced to publicly notify the Pennsylvania State Board of Accountancy within BHG's April 28, 2023, follow-up letter to the Company (due to the Company's apparent refusal to voluntarily correct the inaccurate representation after BHG's initial March 17, 2023, public letter/report).
BHG, within the Letter issued today, demanded: 1) the Company restate its May 9, 2023, Form 10-Q filing with the Commission to correct "strong[ly] evidence[d]" apparent violations of GAAP ASC 350/360 and Regulation S-X; 2) the Company restate all historical Commission filings which also contain "strong[ly] evidence[d]" apparent violations of GAAP ASC 350/360 and Regulation S-X, as explicitly outlined within BHG's March 17, 2023, public report; and 3) call an extraordinary general meeting of investors, given the Company's "strong[ly] evidence[d]" apparent insolvency, pursuant to its legal obligation under Ireland's Companies Act of 2014, § 1111, to "deal with the situation" of a net asset deficit.
The Letter issued by BHG to the Company today, in addition to BHG's March 17 and April 28, 2023, public correspondence, may be found at: https://www.buxtonhelmsley.com/mnk/
About Buxton Helmsley: The Buxton Helmsley Group, Inc. is a premier financial service, asset management and securities research firm, providing an array of services to a diversified group of individuals, corporations, trusts, and other entities. The firm's headquarters are in New York City.
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