L90 Inc. said yesterday it hired an accountant to review its books in relation to its dealings with real estate portal Homestore.com. The move comes just one day after firing its chief financial officer, its chief executive officer resigned and the company's merger with eUniverse Inc. called off.
L90 said the accountant will look into two transactions conducted with Homestore.com in the second and third quarters of 2001. The company also said the accountant will look into any barter transactions involving L90 to determine whether its revenues may have been overstated or misstated during the two quarters.
On March 11, L90 said its president/CEO John Bohan resigned and chief financial officer Thomas Sebastian was placed on administrative leave. The company named Mitchell Cannold, formerly with Space.com, as president/CEO to replace Bohan. Replacing Bickerton as vice president of finance is Steven Kantor, formerly with Dr. Koop. It also said that its planned $50 million merger with online entertainment network eUniverse was called off due to Securities and Exchange Commission and Nasdaq investigations into L90's finances.
L90 said it expects the account's investigation to take between two and three weeks