Acacia Research Corp. disclosed the completed findings of its internal investigation into former Chief Executive Clifford Press and whether he misappropriated corporate funds and resources for personal use.
The results, announced in a regulatory filing Friday, confirmed initial findings revealed by the company in December that Press provided inaccurate information regarding certain corporate expenses, misused funds, and made misrepresentations to the company’s board of directors, according to Acacia. These actions resulted in Press violating the company’s code of conduct, Acacia determined.
As a result of the findings, Acacia said it filed an arbitration demand against Press seeking restitution and other remedies for its shareholders. The company also said it “enhanced its travel and entertainment policy and is considering additional measures concerning various related internal policies and procedures.”
Press resigned as CEO at Acacia effective Nov. 2 after being informed by the board of it learning of his alleged misconduct. He filed a lawsuit against the company seeking to restore his role as a director but has since dropped the legal challenge following a Delaware court’s rejection of his motion, according to Acacia.
Acacia, which acquires public and private businesses to license intellectual property, conducted its investigation in partnership with outside legal counsel. The probe was led by the company’s audit committee. Acacia said its findings required no material changes to its historical financial statements or related disclosures.