So Bloomberg TV has Titwillow's CEO on saying that there are no accounting shenanigans going on in his company. How comforting that he actually has to say that. Recalls Richard Nixon saying that he was not a crook!
If you watched the interview you can see how uncomfortable he was on this issue. 08/07 "Housekeeping Shelf Filing, 08/20 SEC letter, 09/06 Secondary Offering, then crazy dumping shares in September (perhaps October also). It was very unusual action.
Perhaps, SEC and FBI are ready to get to their offices to search more documents.
It will be interesting when Zillow reports its next quarterly results if there are any prior period accounting adjustments following the questions raised by the SEC. Whilst it seems that most publicity has been given to the Revenue 'churn' questions, I was particularly interested in the discussion about changes in accounting treatment in respect of Goodwill and Intangible Assets, and even more so with the Core Logic patent settlement which was structured as a $6.1m License Agreement. The phasing of that settlement with only $458k expensed in 2012 and over $1m for subsequent years, was always going to attract attention and it will be interesting if the SEC swallowed Zillows flaky justification or demanded some other basis of allocation of the settlement.