Inamed Reviewing How It Accounted for Debt

Inamed Corp., the maker of a surgical device to treat obesity, said it’s reviewing the way it accounted for debt, taxes and warranties for breast implants and may have costs of as much as $10.5 million.

The announcement, made after the markets closed, sent shares of the Santa Barbara-based company down as much as $4.19, or 23%, to $14.22 in after-hours trading. They had closed up 11 cents at $18.41 on Nasdaq.

The company said it doesn’t expect to file its quarterly report with the Securities and Exchange Commission until after Wednesday, the SEC deadline for companies to certify the accuracy of financial reports.

Inamed said it’s examining accounting for long-term notes issued between 1996 and 1999 and restating those figures may result in after-tax costs of $5 million.

Inamed executives couldn’t be reached for comment.