March 1 Diagnostic company Alere Inc
said on Wednesday it would delay filing its 2016 annual report
and that it has not yet fixed a material weaknesses with respect
to its revenue recognition practices disclosed in its 2015
The company is reviewing revenue recognition practices at
its South Korean and Japanese units as well as related
"inappropriate conduct" at its South Korea unit, Alere said in a
regulatory filing. (bit.ly/2lSHn3o)
Alere said it expects its 2016 annual report will show that
the company's disclosure controls and procedures and internal
control over financial reporting were not effective as of Dec.
The company said in August that its 2015 annual report,
which was also delayed, had a material weaknesses related to its
revenue recognition practices.
That issue along with a laundry list of others, including
probes into Alere's billing and foreign sales practices, led
Abbott Laboratories in December to move to end its plan
to buy the diagnostic company.
In July, at the behest of the U.S. health regulator, Alere
recalled a device used to monitor levels of a widely used blood
thinner because it was found to generate faulty results.
(Reporting by Akankshita Mukhopadhyay in Bengaluru; Editing by