Beazer Homes restates prior earnings

The company said it would restate financials for several prior-year periods after an internal probe found employees in its mortgage-origination unit violated federal lending rules. The company has said it received a subpoena from the United States Attorney's office in the Western District of North Carolina seeking documents related to the mortgage service.

Beazer previously disclosed that its former chief accounting officer may have inflated reserves and other accrued liabilities in earlier periods.

The Securities and Exchange Commission has launched a formal investigation of Beazer to determine whether any person or entity related to the company violated federal securities laws.

A shareholder advisory group has since urged Beazer's board to fire Chief Executive Ian McCarthy. The board has not complied.

Beazer said it intends to attempt to negotiate settlements with prosecutors and regulatory authorities concering some if the outstanding issues the company faces.