Autodesk has been under deep scrutiny over an accounting scandal that led to the resignation of its CFO over potentially inflated financial metrics.
Activist Starboard Value has a $500 million stake in software maker Autodesk and is weighing legal action over the company's delayed disclosure of an internal investigation into accounting malfeasance.
Starboard's stake is valued at roughly $500 million, according to people familiar with the matter. The activist, which has a long track record of investing in the technology sector, is particularly concerned about the timing of Autodesk's disclosure of an internal investigation which revealed that executives misled investors around the company's free cash flow metrics and operating margins, said the people, who requested anonymity to discuss confidential information freely.
The delayed disclosure came a little more than a week before the deadline to nominate directors closed. The tight window and timing of the disclosure has raised significant concerns inside Starboard, the people said, that Autodesk's board deliberately chose not to inform shareholders ahead of its annual meeting. Such a delay would potentially limit a shareholder's ability to nominate its own candidates in a contested fight.
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