The construction equipment maker, Caterpillar, continued to absorb the big rock thrown in the firm, as its shares in the stock market logged its second straight poor outing in reports accusing the company of tax and accounting fraud in an attempt to boost its share price.
Instant Nightmare
It was the second losing affair for Caterpillar shares since Wednesday as the company registered another 1.7% decline in its shares on Thursday, a testament that the firm was absorbing the effect of the tax fraud accusations.
On Wednesday, Caterpillar shares, one of the components in the Dow Jones Industrial Average index, gave up near 2%, don $1.73 and traded at $94.19 following a federally commissioned report surfaced about the firm’s fraudulent accounting records.
In a report gathered by the New York Times on late Tuesday, Leslie A. Robinson, am accounting professor form the Dartmouth College, revealed that ““Caterpillar did not comply with either U.S. tax law or U.S. financial reporting rules.”
He also cited that the reason behind this malicious act by the firm to not comply with the standard rules was to keep its shares price in the stock market higher.
The provider of the construction equipment products was quick to react on the reports, denying the allegations and claiming that the company is living by their code of conducts and their values.
It was the second time the company was involved in a disarray as Caterpillar’s headquarters and facilities in Central Illinois were raided by law enforcement officials last week for the collection of documents and the company’s electronic information.