SEC, Nasdaq Investigate L90; eUniverse Merger Delayed
The Securities and Exchange Commission is investigating the company's finances, while the Nasdaq Stock Market is seeking information regarding L90's stock.
As a result, L90's acquisition by interactive entertainment network eUniverse Inc. has been postponed until at least late March. The companies planned to merge Feb. 28.
The company received a letter from Nasdaq's Listing Investigations division seeking specific information under Marketplace Rule 4330 c, which considers whether a company's stock should remain listed on the exchange.
L90 said it intends to "fully comply" with both investigations and that its board of directors launched an independent investigation on the SEC matter and is specifically concerned with the Feb. 1 resignation of its vice president of finance. The company did not name the vice president, whose resignation was effective immediately.