Symantec (SYMC) stock plunged 33% in early trading Friday on the news.
Symantec Corp's (SYMC.O) shares sank by more than a third on Friday after the cyber-security firm said it was investigating concerns raised by a former employee but gave little other detail, spooking investors and Wall Street analysts.
The fall knocked roughly $6 billion off Symantec's market value, drove a slew of price target cuts by analysts and was the steepest decline in its shares since the dot-com bubble of 2001.
The maker of Norton anti-virus software said on Thursday the issue in question was not security-related or about a breach in its systems but added the probe was being led by an audit committee from its board of directors.
A source familiar with the matter told Reuters it was separate to another investigation launched in November by Lifshitz & Miller LLP into the board for possible violations of federal securities laws in relation to its executive compensation awards.
The company didn't provide details about the probe. In its earnings release Thursday, it said the investigation was "in connection with concerns raised by a former employee."
Symantec said the audit committee has hired independent advisers to help, and that it has been in touch with the Securities and Exchange Commission.
KPMG is Symantec's independent accountant. KPMG has come under criticism because it is also the accountant for two blue-chip companies with major financial headaches — GE (GE)and Wells Fargo
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