Darktrace—Short-seller report alleged accounting irregularities similar to Autonomy fraud
Quintessential Capital Management published a 70-page report alleging potential accounting errors at Darktrace, including 'channel stuffing' and 'round-tripping' to inflate revenue. The report referenced practices similar to those that sank Autonomy, the company founded by Darktrace investor Mike Lynch. EY's independent review found only 'small number of errors and inconsistencies' not material to financial statements.
Scoring Impact
| Topic | Direction | Relevance | Contribution |
|---|---|---|---|
| Corporate Governance | -against | primary | -1.00 |
| Overall incident score = | -0.057 | ||
Score = avg(topic contributions) × significance (medium ×1) × confidence (0.57)× agency (incidental ×0.1)
Evidence (1 signal)
Short-seller report alleged accounting irregularities similar to Autonomy fraud
Quintessential Capital Management published a 70-page report alleging potential accounting errors at Darktrace, including 'channel stuffing' and 'round-tripping' to inflate revenue. The report referenced practices similar to those that sank Autonomy, the company founded by Darktrace investor Mike Lynch. EY's independent review found only 'small number of errors and inconsistencies' not material to financial statements.