The investigation was conducted by a special committee comprised of two Krispy Kreme independent directors. The committee is co-chaired by Michael H. Sutton, formerly chief accountant of the United States Securities and Exchange Commission, and Lizanne Thomas, a senior corporate partner in the Atlanta office of Jones Day, a global law firm. Krispy Kreme's legal counsel, Weil, Gotshal & Manges LLP and Smith Moore LLP, as well as a forensic accounting team from Navigant Consulting Inc., assisted the Committee.

The special committee said in a statement: "In ourview, Scott A. Livengood, former chairman of the boardand chief executive officer, and John W. Tate, formerchief operating officer, bear primary responsibilityfor the failure to establish the management tone,environment and controls essential for meeting thecompany's responsibilities as a public company. KrispyKreme and its shareholders have paid dearly for thosefailures, as measured by the loss in market value ofthe company's shares, a loss in confidence in thecredibility and integrity of the company's managementand the considerable costs required to address thosefailures."

However, the committee has decided not to sue presentand former Krispy Kreme directors and officers.