Daily Journal Corp., the California publisher that counts Charles Munger as chairman, said it will appeal a notice of delisting from the Nasdaq Stock Market after failing to meet a June 30 deadline for filing financial reports.
Daily Journal’s filings were delayed amid a dispute with its former accountant, Ernst & Young LLP, about internal controls. The company filed its fiscal-year report several months behind schedule on June 24 and has yet to publish quarterly updates for the periods ended Dec. 31 and March 31.
The notice from Nasdaq “will not immediately result in the delisting of the company’s common stock,” Daily Journal said yesterday in a regulatory filing. “Under Nasdaq Stock Market rules, the company’s common stock will continue to trade on Nasdaq during the pendency of an appeal.”
Munger, Warren Buffett’s longtime business partner at Berkshire Hathaway Inc., used Daily Journal’s cash at the depth of the financial crisis to invest in stocks including Wells Fargo & Co. As those bets paid off in recent years, they pushed up the publisher’s market value, prompting a more rigorous evaluation of its accounting controls.
Daily Journal said in a separate filing that it had hired BDO USA LLP as its auditor, replacing Ernst & Young. The publisher will request additional time for the appeal so that the new firm can complete its review of the outstanding quarterly reports.