Finance:Channel stuffing
From HandWiki
Channel stuffing is a business practice in which a company, or a sales force within a company, inflates its sales figures by forcing more products through a distribution channel than the channel is capable of selling.Cite error: Closing </ref> missing for <ref> tag[1][2] and private class-action suits have been filed.[3] Channel stuffing might also be part of a broader pattern of financial impropriety.[4]
References
- ↑ "McAfee, Inc.: Lit. Rel. No. 19520" (Press release). US Securities and Exchange Commission. January 4, 2006.
While engaging in this “channel stuffing,” McAfee improperly recorded the sales to distributors as revenue.
- ↑ "Bristol-Myers Squibb Company : Lit. Rel. No. 18822" (Press release). US Securities and Exchange Commission. August 6, 2004. Retrieved May 9, 2015.
Bristol-Myers inflated its results primarily by: (1) stuffing its distribution channels with excess inventory near the end of every quarter in amounts sufficient to meet sales and earnings targets set by officers ("channel-stuffing")
- ↑ "Glancy Binkow & Goldberg LLP – Attorneys at Law". Glancylaw.com. January 21, 2004. http://www.glancylaw.com/amazing_case.php?caseid=125.
- ↑ O'Sullivan, Kate (2005-06-01). "Kremed!". CFO Mag.. http://www.cfo.com/printable/article.cfm/4007436?f=options. Retrieved 2012-08-09.
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