Trupanion falls after identifying material weaknesses in internal controls

Along with having announced financial results for the fourth quarter and full year ended December 31, 2023 last night, Trupanion disclosed that it had found two material weaknesses in internal controls. The company stated: “While the company is still completing its assessment of the effectiveness of its internal controls over financial reporting in its upcoming fiscal 2023 Annual Report on Form 10-K, the company expects to report two material weaknesses in internal controls. The first material weakness relates to information technology controls, primarily in the areas of user access and program change-management over certain information technology systems. The second material weakness relates to internal controls over financial reporting, pertaining to the Company’s Other Business segment. The 2023 audit remains open, and the company is working with its auditors to complete the process. As a result, the company’s financial results for the fourth quarter and full year 2023 are preliminary and subject to the completion of the audit. Efforts to remediate these material weaknesses are underway. The company expects to provide additional details about the material weaknesses, including its remediation efforts, in its Annual Report on Form 10-K.” In pre-market trading, Trupanion shares have fallen $8.39, or 24%, to $26.89.