German licence trader Advanced Medien has launched an investigation into its 1999 and 2000 accounts and warned that it may have to re-state these years financial figures,
The company said that the measure had become necessary "because of the current course of the lawsuit against the principal debtor of Advanced Medien." It added that the court "has come to believe that there may have been sham transactions in 1999 and 2000 between the management board that was in office during that time and the client in question, with the involvement of one supervisory board member."
In 2000 Advanced announced a loss of Euros36.7m.The company said that the three main causes for the deficit were a valuation allowance of Euros13.8m, subsequent price reductions worth Euros3.3m and sales cancellations costing Euros11.2m. All the corrections were made in regards to the same customer.