Publishing Data Management says Google’s $22 billion loss was preventable with automated controls currently available
NEW YORK, Oct. 25, 2012 — PDM, a leading publishing technology supplier, reacted to Google’s Form 8-K debacle – and resultant $20 billion stock value loss – by stressing the importance of automated accountability safeguards that are now available in the electronic document industry.
According to Bloomberg Businessweek, Google’s loss occurred when its filing agent, R R Donnelley, prematurely submitted a draft version of the earnings report to the Securities and Exchange Commission (SEC) before the market closed – and without authorization, Google stated.
Financial analysts and reporters – who monitor SEC filings – publicized the report within minutes of the filing. Google suffered a nine percent drop in the value of its shares that wiped more than $20 billion from its market capitalization; trading in Google stock was temporarily suspended.
"It doesn't happen often," as Ron Passaro, a former filing agent in Manhattan noted, but "The risk is insane."
R R Donnelley blamed its blunder on “human error” and says it is investigating the incident.
PDM President Addison Roverano’s comment concerning the “human error” was “An automated end-to-end document publishing system – that does not rely on handoffs to third parties such as the print vendor in question – allows a company’s internal business rules and lines of authority to be stringently enforced. No third-party customer service rep should be able to file a company’s document with the SEC.”
PDM’s ProofPlus® system allows online collaboration among multiple authors, editors and reviewers and requires no third-party handoffs even for document composition, which can now be 100% automated. Its software does not allow filings to the SEC to be transmitted until the document is finished – issues corrected, content fully resolved, and then specifically approved for release by the firm itself through an audited electronic sign-off.
Systems analyst Kathie Brown recalls, “The development of ProofPlus® as a completely automated publishing system was triggered by PDM's mutual fund customers and their need for collaboration and rigorous version control in preparing multiple financial regulatory documents that include shared 'single source' content. ProofPlus® meets these needs by integrating project management, workflow tools, a robust permissions set, and a formal approval process with accountability at every level.”
PDM, a private company headquartered near Wall Street in New York City, has been supplying services and software tools to the financial industry for over 40 years.
Contact Publishing Data Management at +1 (212) 673-3210 or firstname.lastname@example.org to make sure you eliminate a catastrophic risk to your firm, or visit PDM’s website at www.proofplus.com
Name Karen Montgomery
Phone (212) 673-3210