Timothy Dick

Quick summary on Timothy Dick

Timothy Dick, the former Chief Financial Officer of Akorn, Inc., has been implicated in several financial misconduct allegations:

Inaccurate Financial Reporting: During his tenure from June 2009 to August 2015, Akorn, under Dick’s financial leadership, was accused of violating financial reporting and internal control regulations, leading to significant misstatements in the company’s financial statements.

Inflated Financial Metrics: A restatement in May 2016 revealed that Akorn’s net sales for 2014 were overstated by approximately 7%, and income from continuing operations before taxes was inflated by about 136%, indicating severe internal control deficiencies during Dick’s oversight.

SEC Settlement: In March 2018, the Securities and Exchange Commission (SEC) filed a civil action against Akorn, Dick, and former controller David Hebeda. Without admitting or denying the allegations, Dick agreed to a settlement that included a $20,000 civil penalty and a court order preventing future violations of financial reporting and internal accounting control laws.

Questionable Professional Background: Despite holding degrees from the University of Michigan and the University of Texas at Austin, Dick’s tenure at Akorn raises concerns about his effectiveness in ensuring regulatory compliance and maintaining accurate financial records.

Impact on Corporate Transactions: The financial discrepancies and subsequent legal issues during Dick’s tenure contributed to jeopardizing a significant acquisition deal between Akorn and Fresenius SE & Co. KGaA, highlighting the broader implications of the alleged misconduct.

Lack of Transparency in Professional Engagements: There is ambiguity surrounding Dick’s involvement with other firms, including PeaceHealth, Walgreens, Johnson & Johnson, and Option Care, raising further questions about his professional integrity and transparency.

Leadership During Legal Turmoil: Dick’s leadership period at Akorn was marked by substantial legal challenges, casting a shadow over his capability to navigate and rectify complex financial compliance issues effectively.