Buxton Helmsley Issues Letter to U.S. Senators Warren and Whitehouse Related to Mallinckrodt Plc. $2B Concealment of Asset Value Depreciation Expenses

Rhea-AI Summary

The Buxton Helmsley Group, Inc. has released an open letter addressed to U.S. Senators Elizabeth Warren and Sheldon Whitehouse, highlighting financial misconduct at Mallinckrodt (NYSE: MNK). The investigation uncovered a scheme of concealing asset depreciation and impairment expenses, violating GAAP standards. BHG demands the restatement of historical financial statements and write-downs of asset values based on previous standards. The ongoing concealment of financial data under the current CFO was also pointed out. These revelations raise significant concerns about Mallinckrodt's financial practices and transparency.

Positive

• None.

Negative

• Claims of financial misconduct involving asset value concealment.
• Violation of GAAP standards related to asset depreciation and impairment.
• Demands for restatement of financial statements could undermine investor confidence.
• Continued concealment of asset depreciation under current CFO raises governance concerns.

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 U.S. Senators Elizabeth Warren and Sheldon Whitehouse, delivering the audited results of an extensive investigation into financial misconduct at the Company involving an evidenced scheme of concealing asset value depreciation/impairment expenses, in violation of GAAP ASC 350, 360 and Regulation S-X, taking place both before and after the Company’s Chapter 11 Reorganization. BHG also enclosed an open letter simultaneously issued to the Company’s directors and officers, demanding the restatement of the historical financial statements of the Company, and demanding write-downs of post-reorganization asset values based on the Company’s prior-professed standards of determining the fair value of asset’s securing the Company’s capital structure. The open letter outlined detailed and precise evidence of the Company’s continued asset value depreciation and impairment expense concealment from the Company’s post-reorganization financial statements, under the leadership of the same Chief Financial Officer.

The full Letter to U.S. Senators Warren and Whitehouse of the Senate Finance Committee may be found at: https://www.buxtonhelmsley.com/mnk/

The full letter to the Company, dually issued today, in addition to previous letters to/between the Company leading up to the conclusion of BHG’s extensive investigation, 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230315005966/en/

Media:

Public Relations and Corp. Comm.

The Buxton Helmsley Group, Inc.

Tel: +1 (212) 561 - 5540, Option 4

press@buxtonhelmsley.com

Source: The Buxton Helmsley Group, Inc.

FAQ

What financial misconduct was revealed in the BHG letter about Mallinckrodt (MNK)?

The letter details a scheme to conceal asset value depreciation and impairment expenses, violating GAAP standards.

Who received the open letter from Buxton Helmsley regarding Mallinckrodt (MNK)?

The letter was addressed to U.S. Senators Elizabeth Warren and Sheldon Whitehouse.

What demands were made by Buxton Helmsley concerning Mallinckrodt's financial statements?

BHG demanded a restatement of historical financial statements and write-downs of asset values.

What are the implications of the financial misconduct allegations for Mallinckrodt's stock (MNK)?

The allegations could undermine investor confidence and negatively affect the company's stock performance.