Home » Geneva company denounced: Temenos accused of having rigged its accounts

Geneva company denounced: Temenos accused of having rigged its accounts

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Geneva company denounced: Temenos accused of having rigged its accounts

– Temenos accused of rigging its accounts

Published: 02/15/2024, 4:56 p.m. Updated 16 hours ago

The banking software specialist lost almost 30% on the stock market following accusations of accounting fraud.

KEYSTONE

A real stock market nerd. The title of Temenos fell by almost 30% this Thursday, after a Hindenburg Research study suggested that the Geneva-based banking software maker had tampered with its accounting.

The financial analysis company Hindenburg Research is not the first to come. Specializing in short sales, that is to say speculating downward on companies whose shares it believes will plunge, the New York firm attacked the Indian conglomerate Adani (electricity production, ports , real estate, media, etc.) last year. She accused the leaders of being involved in large-scale fraud. At the time, the conglomerate’s stock had plunged heavily.

Suspected accounting irregularities

Temenos? According to the Bloomberg agency, Hindenburg Research believes it has detected “major accounting irregularities” at the banking software publisher. Temenos also allegedly “manipulated profits,” according to the report from the financial analysis firm, which adds that these practices were an “open secret” within the firm.

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Hindenburg Research speaks of “aggressive practices”. “Several former employees indicated that CEO Andreas Andreades would encourage these practices, which help mask significant customer dissatisfaction and attrition with the products,” writes the research firm, cited by the AWP agency.

Former executives denounce

Various alleged frauds such as “backdating of contracts” or “false partnership agreements” with several companies are detailed, in particular by former executives of the group, reports AWP.

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Temenos reacted to this information late in the afternoon. The Hindenburg Research document allegedly contains “factual inaccuracies and analytical errors, in addition to false and misleading allegations,” the company denounces in its position statement.

Bloomberg Intelligence analyst Tamlin Bason believes the report could erode the “positive sentiment” that Temenos’ FY2023 results had generated, after a “disastrous 2022.” The company will be expected at the turning point on February 19 and 20 during its results and outlook presentation days to investors.

Nicolas Pinguely has been a journalist in the economic section since 2018. A specialist in finance, he has worked in the past for Bilan magazine, at Agefi and at Le Temps. He has also held various positions in banks and financial companies, particularly in microfinance. More informations

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