L-3 launches misconduct review

L-3 Communications Holdings, an international aerospace firm with a business segment in Madison, Miss., launched a review into "accounting matters" resulting from errors and misconduct across its entire aerospace system division. L-3 revealed the review in a July 31 earnings filing with the Securities and Exchange Commission. The Madison office does business as L-3 Vertex Aerospace. Contract cost overruns that were inappropriately deferred and overstatements of net sales were the primary cause for some $50 million in adjustments, the company said. CEO Michael Strianese was “extremely disappointed” with the violations to company policies, ethical conduct and controls. It “does not represent the way we do business,” he said. It is not clear if the misconduct mentioned was limited to the Madison office. (Source: Jackson Clarion Ledger 05/07/14)