In a July 31, 2013 memo, which has never been made public, Doug Anderson, the former chief auditor at Dow Chemical, detailed concerns that he feared could put the company in legal peril. Almost all these concerns revolved around Dow’s CEO Andrew Liveris, and whether Dow may have misled shareholders and U.S. regulators about projects or expenses linked to him.
Serious concerns revolving around the improper spending of Liveris first surface late last year in a lawsuit filed by Kimberly Wood, a former fraud investigator for the company, and these allegations seem to rum much deeper.
This in-depth report from Reuters details the history of what seems like an enormous misappropriation of funds by Dow’s chief executive and explains how activist/ investor Daniel Loeb’s Third Point hedge fund acquired a 2 percent stake in Dow. Loeb launched a campaign chastising Liveris for a series of alleged “broken promises” – from cutting dividend payments to ill-timed acquisitions and stated that they “left Dow under-valued.”