Adler Group SA, a Luxembourg-based real estate company active in Germany with a listing on the Frankfurt Stock Exchange, has been fined €30,000 by Luxembourg’s financial supervisor CSSF because it has not deposited an audited annual financial report for 2022. Adler, as a Luxembourg firm, is subject to the country’s transparency law, CSSF said in a statement issued on Monday.
The CSSF said that Adler had failed to meet the deadline of April 30, 2023, for filing its 2022 annual financial report. The company had previously requested an extension to the deadline, but this was denied by the CSSF.
Adler has said that it is working to finalize its 2022 accounts and that it expects to file them by the end of June 2023. However, the CSSF said that the company’s failure to file its accounts on time was a serious breach of its regulatory obligations.
The fine imposed by the CSSF is the maximum that can be imposed for a first offense. Adler has the right to appeal the fine.
In addition to the fine, the CSSF has also ordered Adler to publish an announcement in a national newspaper stating that it has been fined for failing to file its 2022 annual financial report.
The CSSF’s action comes at a time when Adler is facing a number of challenges. In recent months, the company has been the subject of a number of short-seller reports that have alleged accounting irregularities. Adler has denied these allegations, but the reports have led to a sharp fall in the company’s share price.
The CSSF’s fine is likely to further damage Adler’s reputation and make it more difficult for the company to raise capital. Adler is currently in the process of trying to sell off a number of its assets in order to reduce its debt pile. However, the ongoing investigation into its accounts is likely to make it more difficult for the company to find buyers for its assets.
The CSSF’s action is a reminder to all listed companies of the importance of complying with their regulatory obligations. Failure to do so can result in significant financial penalties and reputational damage.