RE/MAX Holdings Inc. has delayed filing its quarterly results and has now received a non-compliance notice from the New York Stock Exchange and may face legal action from shareholders
RE/MAX Holdings Inc. has delayed filing its quarterly results and has now received a non-compliance notice from the New York Stock Exchange and may face legal action from shareholders.
The firm behind the eponymous global real estate franchise and the Motto Mortgage brokerage franchise filed a notice with the SEC earlier this month delaying its third quarter results.
It said at the time that this was due to an investigation by a specially appointed committee of independent directors “to investigate allegations concerning actions of certain members of the Company's senior management.”
These allegations include “a previously undisclosed loan of personal funds from David L. Liniger, the Company's Co-Chief Executive Officer and Chairman, to Adam M. Contos, the Company's Co-Chief Executive Officer, and allegations of wrongdoing in employment practices and conduct.
RE/MAX says that these matters could be violations of its codes of ethics and policies.
The firm says that “ Liniger and Contos have confirmed the existence of the personal loan for the purchase of a residence in the amount of $2.375 million at a below market interest rate, certain other personal transactions in the form of cash and non-cash gifts, and that no Company funds were used or otherwise involved in any of these transactions.”
The NYSE notice informs RE/MAX that it now has 6 months to file its Q-10 quarterly results.
RE/MAX says it is still undergoing certain aspects of the investigation.
Meanwhile, law firm Scott + Scott says that it is investigation whether certain officers and directors of RE/MAX have breached their fiduciary duties to the real estate firm and its shareholders.
The law firm says that shareholders may have legal claims against RE/MAX and should contact attorney Joe Pettigrewat at Scott + Scott.
The firm behind the eponymous global real estate franchise and the Motto Mortgage brokerage franchise filed a notice with the SEC earlier this month delaying its third quarter results.
It said at the time that this was due to an investigation by a specially appointed committee of independent directors “to investigate allegations concerning actions of certain members of the Company's senior management.”
These allegations include “a previously undisclosed loan of personal funds from David L. Liniger, the Company's Co-Chief Executive Officer and Chairman, to Adam M. Contos, the Company's Co-Chief Executive Officer, and allegations of wrongdoing in employment practices and conduct.
RE/MAX says that these matters could be violations of its codes of ethics and policies.
The firm says that “ Liniger and Contos have confirmed the existence of the personal loan for the purchase of a residence in the amount of $2.375 million at a below market interest rate, certain other personal transactions in the form of cash and non-cash gifts, and that no Company funds were used or otherwise involved in any of these transactions.”
The NYSE notice informs RE/MAX that it now has 6 months to file its Q-10 quarterly results.
RE/MAX says it is still undergoing certain aspects of the investigation.
Meanwhile, law firm Scott + Scott says that it is investigation whether certain officers and directors of RE/MAX have breached their fiduciary duties to the real estate firm and its shareholders.
The law firm says that shareholders may have legal claims against RE/MAX and should contact attorney Joe Pettigrewat at Scott + Scott.
