SARASOTA, Fla.-Pinnacle Holdings Inc. said the Securities and Exchange Commission unintentionally made public its investigation of Pinnacle’s independent public accounting firm, PriceWaterhouseCoopers L.L.P., regarding certain related accounting issues, and consequently caused the devaluation of Pinnacle’s stock.
The stock closed at $14.75 last Friday, down $2.31 from the previous day’s close.
Pinnacle noted the independence of accountants and the standards by which the SEC believes such issues should be judged are currently a part of a controversial SEC proposal regarding new rules about auditor independence.
“Pinnacle believes that it has become unfairly embroiled in the policy and political debate over these issues and that as a result, the market value of its shareholders’ interests in the company have been unduly harmed,” the company said. “Nevertheless, Pinnacle remains steadfast in its belief that its accounting practices and financial statements are fully in accordance with all appropriate accounting principles.”
Goldman Sachs downgraded Pinnacle last week from “market outperform” to “perform,” and Wachovia Securities changed its recommendation from “buy” to “neutral” following the SEC’s disclosure.
