The drama between the Daily Journal and a whistleblower firm continues to unfold. The Daily Journal responded to Buxton Helmsley’s call for an 8-K filing addressing the accounting concerns it raised on July 29, but Buxton Helmsley accuses the company of ignoring the fundamental accounting concerns it raised and making “outright false statements.”
Meanwhile, both the Daily Journal and Buxton Helmsley call on the late Charlie Munger’s stellar reputation in support of their sides of the issue.
Daily Journal responds to allegations by filing 8-K
In the 8-K it filed on July 29, the Daily Journal officially disclosed the back-and-forth it’s been having with Alex Parker of Buxton Helmsley. The firm called out the Daily Journal for allegedly violating GAAP accounting requirements, saying it should capitalize software development costs instead of expensing them under GAAP.
Buxton Helmsley also said doing this would unlock more than $160 million in incremental equity value for shareholders and requested two board seats — with a performance-based plan that would pay $24 million in company stock if the price rose by that amount.
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