By Michael Dabaie
Live Ventures Inc. shares were down 46%, to $33.61, in early trading Wednesday after the company said the U.S. Securities and Exchange Commission filed charges against the company.
The holding company said it denies the allegations and will defend itself in court.
The SEC said its complaint alleges that Live Ventures and its chief executive, Jon Isaac, recorded income from a backdated contract to boost Live Ventures' pre-tax income for fiscal year 2016 by 20%. SEC also alleged Live Ventures overstated earnings per share by 40% by improperly understating Live Ventures' outstanding share count.
SEC said the complaint also alleges the CEO hired a stock promoter to boost interest in Live Ventures.
"The company categorically denies all charges and will vigorously defend itself," Live Ventures said in a statement.
Live Ventures said it has enlisted the representation of John Hueston of the law firm Hueston Hennigan.
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(END) Dow Jones Newswires