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MarketWatch First Take: The Spotify IPO filing includes a giant warning sign

The following corrects a story on Spotify’s planned initial public offering to note that the Section 404 warning came about as a result of Sarbanes-Oxley legislation.

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Spotify is run by Chief Executive Daniel Ek, who plans to take the company to Wall Street with a direct listing.

Streaming music service Spotify Technology Inc.’s initial public offering documents included a warning that should send a shiver down the spine of any investor who remembers the dot-com boom.

Spotify filed with the Securities and Exchange Commission for a rare direct listing Wednesday, offering more than 200 pages of information on the music-streaming service. In the paperwork, the company says it “identified a material weakness in our internal control over financial reporting relating to inadequate financial statement preparation and review procedures” for the past three calendar years.

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