RE:RE:RE:Gents and LadiesPlease, explain your allegations.
My guess is that it might have to do with one of the recent acquisitions. All we know is that it involves financial statements and a disgruntled employee whom the company claims is wrong in their assertions. The assertions probably had to be made to a third party and that might be the tax authority, franchise operators, or former owners who are likely to or have already decided to pursue certain action against MTY (otherwise why bother reporting it). Since it involves financial statements, I do not think it will likely involve some management hanky panky stuff.
In the past, there were some issues with the gift cards or something similar with Kahala, if I remember correctly. MTY had to recognize some impairment adjustments because of that. Maybe there might be some potential issues with the accounting of the marketing/promotional funds, goodwill impairment, or some acquisition-related payout disagreement.
If you get some facts, please, post them on the forum. I think we are all curious about what is happening. I am overweight MTY and it has been quite a disappointed journey so far.