EMI Uncovers Brazilian Fraud
October 26, 2006 at 7:15 AM (PT)
THE INTERNATIONAL HERALD TRIBUNE reports that EMI GROUP uncovered accounting fraud at its BRAZILIAN recorded music business that incorrectly increased revenue and operating profit.
Shares in EMI GROUP plunged after the company revealed that the fraud resulted in EMI MUSIC overstating its revenue by about £12 million, or $22.5 million (U.S.), and its operating profit by about £9 million. EMI said it was conducting a full investigation and has suspended some senior managers in BRAZIL.