SEC Closes Adecco Probe with No Action

Adecco, the world's largest staffing firm, announced Tuesday that the Securities and Exchange Commission had closed its investigation into the Swiss company's accounting, with no recommendation for enforcement action. The probe was initiated after Adecco's uncovering of accounting irregularities at its North American unit early in 2004 caused it to delay financial reports. Swiss authorities launched a similar investigation. The firm's own independent examination found no fraud, but did report minor accounting control weaknesses at Adecco Staffing North America. Uncertainty about the company's financials cost its investors billions of dollars in market value, and led to the resignation of the chairman, finance chief and head of its North American operations. In June 2004, a new board of directors and new co-chairmen were appointed to try and restore confidence in the firm. Adecco's stock rose on news of the end of the SEC's probe, though it was still almost 20 percent below where it stood before the discovery of the accounting problems.