Gillette experienced a setback at the end of the 1920s as its competitor AutoStrop sued for patent infringement. The case was settled out of court with Gillette agreeing to buy out AutoStrop for 310,000 non-voting shares. However, before the deal went through, it was revealed in an audit that Gillette had been overstating its sales and profits by $12 million over a five-year period and giving bonuses to its executives based on these numbers. AutoStrop still agreed to the buyout but instead demanded a large amount of preferred stock with voting rights. The merger was announced on October 16, 1930, and gave AutoStrop's owner Henry Gaisman controlling interest in Gillette.