Root Inc. internal investigation finds $9.5M in fraudulent payments by former employee; expects $9.1M write-off

Root, Inc.

Former senior marketing employee directed at least $9.5M in payments to a vendor without disclosure; $0.4M already expensed.
Company expects to write off $9.1M recognized as prepaid expense as of Sept 30, 2022.
Investigation ongoing; may uncover further fraudulent transactions with other vendors.
Audit committee engaged outside counsel; DOJ and SEC voluntarily notified; cooperation expected.
Company will pursue recovery and cooperate with law enforcement; no estimate of further impact yet.

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