MDC Partners' share price fell almost 30% yesterday after it disclosed that Miles Nadal, its chairman and chief executive, was paying back $8.6 million to the company.
The cash relates to travel and entertainment expenses, charitable donations, medical expenses, and certain expenses for which the information was incomplete, the owner of Crispin Porter & Bogusky and Anomaly said in a regulatory filing.
MDC Partners said since October 2014 it has been cooperating with the Securities and Exchange Commission following a subpoena. The company set up a special committee of independent directors to review Nadal’s expenses.
The committee reviewed thousands of documents, emails and other accounting information and interviewed several individuals with full cooperation of the company and its board, including Nadal.
MDC Partners said it does not expect there will be any impact on its past financial statements following the review
Before the details were released on Monday evening, the company's share price was $29.98. Yesterday it dropped 27.8% to $20.20.
The subpoena also asked MDC Partners to supply documents about the company’s goodwill and some other accounting practices.
A spokesperson for MDC Partners said it believes the SEC’s inquires into those matters are at an early stage.
This article first appeared on campaignlive.co.uk.