Bidz.com Discloses SEC Formal Investigation of its Inventory Accounting

In a press release announcing its fourth quarter results, Bidz.com (BIDZ) added an additional paragraph near the bottom of the release.  It stated that

The Company was notified recently by the SEC of a formal investigation relating to certain aspects of its inventory accounting practices, as well as other matters. The Company intends to fully cooperate with the SEC regarding this matter. The Company remains confident its inventory accounting is correct and in full accordance with GAAP.

Blogging Stocks notes that ex-con Sam Antar has been blogging about Bidz’ strange inventory accounting practices for months.

Read the Bidz.com press release