The Securities and Exchange Commission (SEC) says it is now “necessary and appropriate” to initiate a public administrative proceeding against Lazare Kaplan. This could result in the revocation of the diamond manufacturer’s registration under the Exchange Act, prohibiting the buying or selling of the publicly traded company’s securities.
The New York-based manufacturer hasn’t filed any quarterly or yearly earnings reports since 2009 due to “material uncertainties” involving the recovery of assets and its credit obligations. This comes as a result of its ongoing $500 million legal battle with its former lender, Antwerp Diamond Bank.
This was revealed in a December 21 Form 8-K in which Lazare Kaplan argued for the proceeding to be dismissed entirely or suspended for a year. The company also noted that because it is working to resolve its “material uncertainties,” the 12-month suspension “is the remedy that best serves the interests of the company and its shareholders.”
The diamond manufacturer added that it hopes to resolve this issue within the next year. However, the resolution will not come until after April 9, when a judge will release an initial decision about the proceeding. CJ
