Temenos review brands Hindenburg Research allegations “inaccurate and misleading”
Temenos says it has completed a “thorough independent external review” into previous allegations of client dissatisfaction and accounting irregularities made in a report by Hindenburg Research earlier this year, with the now published review determining “that Hindenburg made a series of inaccurate and misleading allegations about Temenos and its accounting, products, and client relationships”.
Temenos completes independent review of Hindenburg Research allegations
First released back in February, Hindenburg Research says its report followed a four-month investigation into Temenos, including interviews with 25 of the vendor’s former employees and a number of its previous clients.
The firm claimed its investigation “uncovered hallmarks of manipulated earnings and major accounting irregularities”.
Temenos quickly responded to the claims, saying that it “fundamentally refutes” the findings and promising to action “a thorough examination of the allegations raised with independent third parties” during its Q4 and FY 2023 results call on 19 February.
Almost two months on, that examination has now been completed via a “special committee” comprising of the vendor’s board and led by its non-executive chairman, Thibault de Tersant, assisted by Schellenberg Wittmer Ltd, Sullivan & Cromwell LLP, and forensic accountants from Alvarez & Marsal Switzerland LLC as independent examiners.
The vendor claims to have afforded these examiners “unrestricted access” to more than 300,000 documents and electronic communications as well as interviews with 17 current and former employees. It says over 150 attorney and forensic accounting professionals dedicated approximately 22,000 hours investigating the allegations.
Temenos says: “Based on this thorough independent external review, the special committee has determined that Hindenburg Research made incorrect and misleading allegations about Temenos and its accounting, products, and customer relationships and presented purported facts about Temenos in a distorted manner or out of context.”
Speaking on the conclusion of the examination, de Tersant says it “reinforces the board’s view that Temenos is running a sound business” with “robust financial controls and strong governance oversight”.
