Liberty cited the resignation of KPMG as its outside auditor on December 8 as the cause. It said it would file Form 10-Q for both quarters as soon as possible after it is able to find a new auditing firm.
KPMG’s exit was set in motion by the September firing of founder and CEO John Hewitt because an investigation found employees complaints Hewitt was heard having sex in his office and that he favored employees with whom he was romantically involved, as many as 10. When KPMG resigned it wrote Hewitt’s actions, “have created an inappropriate tone at the top which leads to ineffective entity level controls over the organization.”
Liberty is facing a suit by a pension fund that holds shares and a class action suit. They have drawn on the findings of an investigation conducted into Hewitt's actions.