The Nasdaq Stock Market says it will remove Comparator Systems Corp., the embattled fingerprint identification company, from its listings.
Once-obscure Comparator caught the eye of investors and market regulators in May, when its stock set three consecutive trading-volume records.Trading in the company's stock has been halted since May 9 while Securities and Exchange Commission and National Association of Securities Dealers regulators have sought answers to questions regarding the valuation of assets in Comparator's financial statements.
"They have failed to answer questions we have still outstanding from the May 8 trading halt," said Marc Beauchamp, Nasdaq spokesman.
Comparator officials weren't available for comment.
Over four days in May, the stock rose from pennies a share, approaching $2 a share before retreating to close May 8 at 56 cents a share.
Last week, the Securities and Exchange Commission filed a lawsuit against Comparator and three of its officials for allegedly defrauding investors by inflating assets and misrepresenting ownership of certain technology. The company has denied the charges.
Beauchamp said Comparator officials were to appear at a listing-committee hearing that, at the company's request, had been postponed until Tuesday.