Judge: Boot Comverse from pink sheets for not filing reports
Comverse may not be trading even on the pink sheets, after its failure to file audited financial reports for the past several years, a U.S. judge said in a preliminary ruling.
This comes a few days after the news broke that U.S. investor Gorge Soros has sunk $78.4 million into the technology company's shares, giving him about 5% of its stock and making him an interested party.
Comverse has not filed a full financial report since the options backdating scandal broke in 2006, sending founder Kobi Alexander fleeing to Namibia, where he's still fighting extradition to the United States. As a result, the company was booted out of regular trading on the NASDAQ and relegated to the pink sheets, meaning over-the-counter trading.
The decision will not go into force until the U.S. Securities and Exchange Commission reviews and approves it.
The company has said it will publish reports for 2005 through 2008 in August, and the rest within the following few months. Comverse has 21 days to submit an appeal to the SEC. The process of kicking it off the NASDAQ could take several months, and the company may well be able to get its financials in order by then.
Subsidiaries Verint and Ulticom have published their reports and resumed regular trading.