InfoUSA subject to delisting by NASDAQ

Share this article:

Data company InfoUSA received a notice from the NASDAQ stock market on April 2, stating that the company's common stock is subject to delisting because it has not yet filed its annual report on Form 10-K for the fiscal year ending December 31.

The announcement was not unexpected for the Omaha, NE-based data company. Early last month, InfoUSA announced that it would not meet the March 17 deadline for filing.

The delay is the result of ongoing shareholder litigation and a related “informal investigation” into the company by the US Securities and Exchange Commission, according to a report InfoUSA filed with the commission.

In a statement, InfoUSA said that it will request a hearing before the NASDAQ Listing Qualification Panel. As long as InfoUSA requests a hearing by April 9, the company's stock will remain listed on the NASDAQ Global Select Market until a final decision is made. If a hearing request is not filed by April 9, then the company's common stock will be suspended at the start of business April 11.

Stormy Dean, InfoUSA's CFO, did not respond to requests for comment by press time.

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 committee has since moved to stay the case for 150 days in order “to investigate the claims and issues and to determine what action is in the best interests of the Company's shareholders.” On March 17, this request was granted by Chancellor William B. Chandler III, who agreed to stay the case until June 30.

Share this article:
You must be a registered member of Direct Marketing News to post a comment.

Next Article in Data/Analytics

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

Featured Listings

More in Data/Analytics

Analytics vs. Instincts

Analytics vs. Instincts

Even for the savviest marketers, finding the right balance of analytics and gut instincts can prove to be difficult.

MeritDirect Opens San Jose Office

MeritDirect Opens San Jose Office

A force in direct mail, the company looks to expand its digital data services with a footprint in Silicon Valley.

Neustar Decides to Hand Data Over to its Clients

Neustar Decides to Hand Data Over to its ...

AK Media Insights Pro turns data over to marketers to create business-specific aggregations, integrate offline efforts, and probe deeper into their sales funnels.