SunOpta has issued an update regarding the potential impact on existing 2007 quarterly financial statements of the overstatement of inventories at its berry division.
In January, the Canadian natural and organic food group said inventories had been overstated and required a write-down of between US$9m and $11m.
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Immediately on becoming aware of this, SunOpta said it had identified and voluntarily initiated “a wide range of specific actions to understand and address potential root causes and ensure corrective actions are implemented in a timely manner”.
SunOpta said that it is making “good progress” and is satisfied that the actions undertaken will result in improved processes and address the root causes of the problem.
The company added that it was progressing with its 2007 year-end analysis and related investigative procedures in the berry division, and that its audit committee had initiated an investigation into processes within that operation.
The company also said it was aware of a number of class action claims filed against SunOpta and certain of its officers and directors in the Southern District of New York. The company said it would “vigorously defend itself against these claims”.
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By GlobalDataIt said it had taken steps to prevent all insiders from trading in the securities of the company and has also applied for and received a management cease trade order from the Ontario Securities Commission.
Under the order, specified directors, officers and other insiders are prohibited from trading in securities of the company until the restatement of its financial statements.
