A formal letter of complaint from CtW Investment Group has been sent to the SEC on Wednesday, asking regulators to investigate further into the company’s accounting practices.
CtW maintains that T-Mobile US Inc
The investment group works with pension funds that own approximately 600,000 shares of T-Mobile, amounting to roughly 0.1 percent of the shares outstanding.
“TMUS appears to have adopted a significant change to its accounting estimates during these four quarters, without providing shareholders with a clear or convincing explanation for so doing,” said Dieter Waizenegger, executive director of CtW Investment Group.
The misleading numbers are in connection to T-Mobile’s Equipment Installment Plans (EIPs), a product introduced in 2013 by CEO John Legere in an effort to expand the company’s customer base by paying for phones in installments. Earlier in the month, the company settled a
Ripple Down Effect On Parent Company?
T-Mobile’s accounting practices could lead to a ripple down effect on the telecom providers parent company Deutsche Telekom AG (ADR)
It remains to be seen whether the SEC will investigate further into T-Mobile’s questionable accounting practices.
Benzinga has reached out to the SEC on the story, but the SEC declined to comment.
At last check, T-Mobile shares were down 0.22 percent at $54.12.
Image Credit: By WhisperToMe (Own work) [CC0], via
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.