Odimo hires new accounting firm following lawsuit

Odimo—an online retailer of brand name watches, fine jewelry, diamonds, and other luxury goods—has named Rachlin Cohen & Holtz, LLP as its new independent auditors, effective September 2. The new firm replaces Deloitte & Touche LLP. Deloitte resigned as Odimo’s independent auditors on Aug. 31.

The Sunrise, Fla.-based company, which operates three consumer Web sites (www.diamond.com, www.ashford.com, and www.worldofwatches.com), said there were no disagreements with Deloitte “on any matter of accounting principles or practice, financial statement disclosure or auditing scope or procedure or any other reportable events requiring disclosure.”

Rachlin Cohen & Holtz, LLP is one of the largest independent accounting firms in the Southeast and the largest independent accounting firm in South Florida.

On Aug. 26, Odimo announced that it received notice that a securities class action complaint has been filed against the company and two of its officers in Circuit Court in Broward County, Florida on behalf of a purported class of the company’s stockholders. The complaint alleges violations of federal securities laws due to allegedly false and misleading statements in Odimo’s public disclosures in connection with its initial public offering, the company said.

Alan Lipton, Odimo’s president and CEO, who is reportedly named in the lawsuit along with chief financial officer Amerisa Kornblum, said the company intends to fight the lawsuit.

“We firmly believe that this lawsuit is without merit and we intend to vigorously defend the company and our employees,” he said in a statement.

For the second quarter, Odimo reported losing $3.25 million on sales of $11.5 million. The loss was 76 percent wider than the same period the year before, though sales increased 11.3 percent.