Categories: eDiscovery

A publicly traded consumer products company was suspected of having inflated its revenues by relaxing its return policy to the point where many of its sales looked more like consignment goods than actual sales where it would be permissible to record them as such.   The investigation included collecting and analyzing millions of internal communications, accounting records, shipping invoices, bills of lading, delivery manifests, returns, rebates and other documentation of sales and the movement of finished goods inventory to its distributors.  The investigation and forensic accounting work performed provided outside counsel with sufficient information to demonstrate that the allegations of channel stuffing were unfounded and the SEC closed its investigation with no action.