Shares of legal services firm Pre-Paid Legal (PPD) are down $2.87, or 7%, at $37.78 after the stock was briefly halted pending the company’s announcement this morning it received an additional subpoena from the Securities & Exchange Commission following the subpoena it received last October, regarding its products.
The new request asks the company “to provide documents relating to certain membership information, member complaints about provider law firms, our efforts to achieve compliance with all payment card industry requirements,” as well as the departure of CEO Harland Stonecipher on March 3rd, the company said.
The company emphasized the investigation, ongoing, should “not be construed as an indication by the SEC or its staff that any violation of law has occurred, nor should it be considered a reflection upon any person, entity or security.”
The company said it would cooperate. PPD has also been under investigation by the FTC for over two years now.
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