ENIRO: Decision from the exchanges disciplinary committee

Nasdaq Stockholms Disciplinary Committee has rendered its decision in two matters referred to the Committee by Nasdaq OMX Stockholm (the Exchange). The Disciplinary Committee has found that Eniro has contravened certain items of the Exchanges member rules and that Eniro therefore shall pay a fine to the Exchange equal to three annual fees to the Exchange.

In the matter regarding the incorrect accounting that was caused by the former CEO, which the company discovered and corrected during 2014, the Disciplinary Committee has concluded that the disclosures and financial reporting of the company has been incorrect as a result of the errors. At the same time, the Disciplinary Committee stresses that Eniro, as a consequence of the CEOs actions, was put in a distressing situation and that the error related to a question of periodization and a relatively limited amount. In September 2014, Eniro reported its former CEO to the police authority.

In the matter regarding Eniros adjustment in May 2015 of its full-year forecast, the Disciplinary Committee emphasizes that it has not been argued that Eniro knowingly published an incorrect forecast. Nor does the Disciplinary Committee question the statement that a rapid and unexpected negative trend occurred soon after the report for the first quarter was published. Thus, the matter merely related to a question of judgement in which the Disciplinary Committee has found that Eniro should have made a different assessment and adjusted its forecast already on 24 April when the report for the first quarter 2015 was published.

Eniro has come to the same conclusion as the Exchange in relation to the incorrect accounting. The company therefore adjusted its accounting already in 2014 and reported the former CEO to the police authority. As regards the adjustment of the forecast, we note that the Disciplinary Committee sees no reason to doubt that the board of Eniro has spent considerable time and gravity on the forecast issue and emphasizes that the company has not knowingly published an incorrect forecast. Further, the disciplinary committee does not question that a rapid and unexpected negative trend occurred soon after the report for the first quarter was published, notes Eniros chairman of the board Lars-Johan Jarnheimer.