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Strategies & Market Trends : Resource America (REXI) -- Ignore unavailable to you. Want to Upgrade?

To: Pluvia who wrote (184)	10/14/1998 7:11:00 PM
From: Pluvia	Read Replies (1) \| Respond to of 220

The interesting thing about this lawsuit is it names the Auditor and the company. Who's to blame for using non-GAAP accounting that overstated revenue and earnings - Grant Thornton or REXI? Note in the REXI release: dljdirect.com Where GT backs the REXI accounting methods, Grant Thornton states it is REXI's policy, not GT's. This suit likely pits GT vs REXI forcing GT to resign as REXI's accountant and forcing another firm to come in and provide an opinion on REXI's bogus non-GAAP accounting. With a slew of lawsuits (soon to befiled following this one), any new auditor will not cut any corners and face liability in the pending suits. REXI will get nailed, forcing them to re-state revenues, wiping out accretion of discount which wipes out all of their profits... REXI is screwed. Thus begins the end of the REXI story, one of self dealing scumbag management who cooked the books. All Comments IMO Cheers Steve