GRANT THORNTON DISMISSED AS MANNATECH AUDITORDietary supplement developer Mannatech has fired Grant Thornton as its auditor and appointed BDO Seidman in its place after a dispute over the company's chairman.
Grant Thornton gave Mannatech's board an ultimatum: either remove Sam Caster, the company's chairman and founder, or hire another accounting firm. The board decided to keep Caster.
Two months ago, however, Caster resigned as chief executive of the company after the Texas Attorney General sued Mannatech for making exaggerated health claims about its products and using deceptive sales tactics. The company is also facing a class-action lawsuit in Texas.
Grant Thornton recently resigned from an engagement with another company that markets nutritional supplements, Usana Health Sciences. PricewaterhouseCoopers is now Usana's auditor.
INTERGROUP JETTISONS PWC
Intergroup, a real-estate development concern in Los Angeles, has dismissed its auditor, Big Four firm PricewaterhouseCoopers, and named Burr, Pilger & Mayer LLP as its new independent accountant.
In a filing, Intergroup said that its auditor's reports on its financials for the fiscal years ended June 30, 2006 and 2007, did not contain an adverse opinion or disclaimer of opinion, and were not qualified or modified as to uncertainty, audit scope or accounting principle.
There was no reason given for the auditor change.
CHANNELL RETAINS BDO SEIDMAN
Channell Commercial Corp., a Temecula, Calif., telecommunications equipment manufacturer for broadband networks, dismissed Big Four firm Deloitte as its independent accountant and named BDO Seidman as its replacement.
Deloitte's reports on Channell's financials for the fiscal year ended Dec. 31, 2006, did not contain an adverse opinion or a disclaimer of opinion, and were not qualified or modified as to uncertainty, audit scope or accounting principles. The auditor did note that Channell changed its method of accounting for share-based payment in conformity with Statement of Financial Accounting Standards No. 123(R), on share-based payment.
Channell's audit committee approved the auditor change.
BDO will serve as auditor for the fiscal quarter ended Sept. 30, 2007, and for the fiscal year ended Dec. 31, 2007.
