The Nasdaq Listing Qualifications Panel has issued a public reprimand to database marketing giant InfoGroup.
InfoGroup received the reprimand “due to lack of appropriate market disclosure with respect to transactions between InfoGroup and Vin Gupta, its former CEO, lack of oversight with respect to such transactions and a general lack of controls that allowed these issues to occur,” according to an InfoGroup release.
The company regained compliance with the Nasdaq Stock Market on September 2 and will continue to be listed on the Nasdaq Global Select Market.
“We have taken all aspects of this situation extremely seriously,” said Bill Fairfield, the new CEO of InfoGroup, in a statement. “We continue to make positive steps to help move the company forward and this is another indication that we are on the right path.”
InfoGroup, formerly InfoUSA, had received its first warning from the Nasdaq in April. The company’s common stock is subject to delisting because it failed to file quarterly financial reports due to ongoing litigation involving its shareholders. In 2005, shareholder hedge funds Dolphin Limited Partnership and Dolphin Financial Partners filed suit in a Delaware court alleging that Gupta had spent corporate funds on personal expenses.
As part of the shareholder suit settlement, Gupta resigned from his executive position on August 21.