NSP, Inc. charged with securities violations

By Scott Files

Published on April 06, 2006

The defendants in the case claim that as a result of these misleading statements, NSPI's stock traded at artificially inflated prices during the Class period. The complaint further alleges that the company's top officers reaped hundreds of thousands of dollars in ill-gotten bonuses. Other company executives are accused of selling more than $2.9 million worth of their personal stock while the stock held artifically inflated prices.

The complaint further alleges that on, or around, February 17, 2006, the company issued a press release in which it stated that it had expanded its previously announced review of selected financial information with respect to certain of its foreign operations and that it had received notice from Nasdaq that its common stock was subject to delisting.

On March 20, 2006, the company filed an 8-K with the SEC announcing that its previous financial statements could no longer be relied upon and that it had expanded its investigation to include other matters related to the company's financial statements.

Finally, on March 24, 2006, the company announced that it had received a non-compliance notice from the Nasdaq due to failure to file Form 10-K in a timely manner. At this writing, the company's stock has fallen to $11.68 per share.

Comment on this article →