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WANdisco suspends trading after ‘potentially fraudulent’ discovery

WANdisco fraudulent
Image credit: pcruciatti via Shutterstock

Data company WANdisco has suspended its shares on the AIM London market after finding “potentially fraudulent irregularities” in its accounts.

The Sheffield and California-based company, which this week said it had entered the early stages of listing in New York, released a statement suggesting its reported revenue for last year may have been overstated.

“Following investigations undertaken by the CFO and CEO, and as reported to the board of directors of the company, significant, sophisticated and potentially fraudulent irregularities with regard to received purchase orders and related revenue and bookings, as represented by one senior sales employee, have been discovered,” the statement read.

“The identification of these irregularities will significantly impact the company’s cash position and lead to a material uncertainty regarding its overall financial position and significant going concern issues.”

The FY22 report stated WANdisco’s revenue was $24m (£20m). However, following its investigations, the revenue may actually be as low as $9m (£7.5m), the company said.

“In addition, the company has no confidence in its announced FY22 bookings expectations,” the statement concluded.

WANdisco executives will continue investigating along with legal advisors to determine the extent of the fraudulent activity and the actual financial state of the company.

Founded in 2005, WANdisco operates in the big data space. The company specialises in distributed computing.