InfoUSA gets second warning from NASDAQ, hearing scheduled
List and database giant InfoUSA has received a warning from the NASDAQ stock market, stating that the company's common stock is subject to delisting because it has not yet filed its Form 10-Q for the period ending March 31.
The announcement was not unexpected. The Omaha, NE-based data company scheduled a hearing before the NASDAQ Listing Qualification Panel to review the staff determination. InfoUSA's common stock will remain listed on The NASDAQ Global Select Market pending the outcome of the Panel's decision.
In a company statement, the database and list marketer said it “cannot provide any assurance that the Panel will grant its request for continued listing.”
The company's failure to file is due to ongoing litigation involving its shareholders, which has been stayed until June 30. In 2005, shareholder hedge funds Dolphin Limited Partnership and Dolphin Financial Partners filed suit in a Delaware court alleging that InfoUSA founder and CEO Vinod Gupta had spent corporate funds on personal expenses.
In response to the shareholder's litigation, InfoUSA's board of directors formed a special litigation committed on December 24, 2007. According to court papers, the five-member committee consists of “three newly appointed members” of InfoUSA's board as well as two members determined by the court to be “disinterested.”
The company received a similar warning from the NASDAQ on April 2, when it failed a timely filing of its annual report on Form 10-K for the fiscal year ending December 31.
Earlier this year, the company announced that it will rebrand as InfoGroup by June.