InfoGroup USA to retain Nasdaq listing
Jinfo Blog

28th January 2009

By Nancy Davis Kho

Item

On January 28, 2009 the NASDAQ announced that InfoGroup USA will be able to keep its listing on the exchange - http://digbig.com/4yehj. The Omaha, Nebraska-based company, which owns OneSource among other databases, had been under threat of delisting for failing to file financial documents in a timely manner. It retains its spot after firing CEO Vin Gupta in relation to a shareholder lawsuit, and agreeing to more stringent board oversight. A story in International Business Times (http://www.ibtimes.com) said: ‘Under new rules InfoGroup adopted this summer, any transactions between InfoGroup and any business affiliated with an executive or large shareholder will require pre-approval from the board if they cost more than $120,000. In the past, InfoGroup had made sizable payments to a company Gupta owned called Annapurna Corp. for use of a jet plane, the 80-foot yacht American Princess, condos in Hawaii and California and a University of Nebraska stadium box. The shareholder lawsuit alleged the company misspent millions--some of it on former President Bill Clinton and his wife, Sen. Hillary Rodham Clinton, the former Democratic presidential contender.’ The allegations against Gupta have been in the news for months, so it’s probably a relief to the InfoGroup team to have the business and the Nasdaq threat behind them. But it’s costing them a pretty penny to do so; under terms of the lawsuit settlement, Gupta agreed to pay InfoGroup US$9 million over the next five years. But that’s after he gets a $10 million severance payment.

« Blog