The review, by the audit committee and outside counsel, is in progress. Carter's, based in Atlanta, plans to restate financials as soon as possible. "We've initiated a dialogue with the SEC and informed them of this review," said CEO Michael D. Casey. "In addition, we are improving internal controls and management processes to help reduce risks inherent in this component of our business going forward." Sterne Agee analyst Margaret Whitfield said in a note to investors that the restatement and review could result in a change in top management, since Casey, the CEO, was CFO during the time in question. In addition, activist shareholders could seek management change or a change in control, or even interest from private equity or strategic buyers.