Inteliquent gets Nasdaq compliance letter, faces shareholder lawsuit
Inteliquent is facing two more setbacks as the company was informed that it is non-compliant with Nasdaq listing rules and it faces a lawsuit from an investor claiming the service provider violated a Securities and Exchange Commission (SEC) rule.
On August 13, Inteliquent said that it received a letter from The Nasdaq Stock Market LLC notifying the company that it is not in compliance with Nasdaq Listing Rule 5250(c)(1) because it did not file its 10-Q Form for the quarter ended June 30, 2013 with the SEC.
SEC required that the 10-Q form had to be filed by August 9 and it now has until October 14 to file its Form 10-Q for the quarter. The service provider said it would "file the Form 10-Q for the quarter ended June 30, 2013 as soon as practicable and well in advance of the October 14, 2013 due date for the plan."
In related news, one of its shareholders, who is represented by Robbins Arroyo LLP, filed a lawsuit claiming that the company provided "false and misleading forecasts of its financial results."
One of the specific claims in the complaint said that Inteliquent misstated a $78.1 million impairment charge for the fiscal year ending Dec. 31, 2012.
The past year has been one of upheaval for Inteliquent. In addition to seeing its CEO and CFO step down, the service provider decided to sell its Tinet data business to GTT earlier this year. A number of critics said it paid too much for Tinet, a deal which gave it an entrée into the data services and Ethernet interconnection market segments.
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