December 26, 2004
Friedman's in the Press
According to an article titled, "Jeweler's Problems Multiply," in Sunday's Atlanta Journal Constitution, "Friedman's has become a petri dish of corporate afflictions, almost all of which became public only in the last 18 months."
Matt Kempner, the reporter on this article tells about a few state attorney generals that have filed civil actions against this company and he also states that "[t]he Securities and Exchange Commission and the Department of Justice are investigating accounting issues and fraud allegations." Freidman's, Inc. company profile on Yahoo Finance notes that recently there has been a "departure of two or its top executives."
On December 22nd, Yahoo Finance had a press release titled "Friedman's Comments on Civil Actions Filed by States' Attorneys General" stating that "the Company does not condone any improper practices alleged in the complaints. Friedman's further noted that the Company believes that the transactions challenged primarily arose years ago and stated that the Company has in place measures designed to monitor and assure compliance with Company policy concerning credit insurance sales practices."
When companies have state and federal authorities looking into their internal affairs, it can be overwhelming to the company. This is especially true when more than one state decides to proceed with an investigation or civil action. Although this can happen with investigations of street crimes, it becomes a more pronounced issue for companies that may have businesses, offices, or distributors throughout the United States.