While the accounting irregularities will undoubtedly add to the negative sentiment for AOR, the company is already trading BELOW book value. The statement indicates the charge will wipe out 1999 year's income - or maybe create a small loss. This will NOT further reduce Book value of the assets and should certainly not take the company to the price levels you have indicated.
A smart buyer would scoop 100% of the company up at these levels given the quality of its assets. You can bet your life the Board mad sure of the accounting of ALL assets once the irregularities came out - and have clearly concluded that the problems lie in expense accruals - NOT asset book values. EOM
Read my last post on asset values - this stock is certainly not for widows and orphans, and is certainly not going to shoot for the sky anytime soon - but I was making the point that a fall to $2 or $3/share as was suggested by the poster is unlikly IMHO.