Thursday, Pre-Paid Legal Services, Inc. (PPD) said it has received an additional subpoena from the Securities and Exchange Commission on April 13 as a part of the ongoing inquiry by the Division of Enforcement at the Securities and Exchange Commission. The company said the SEC sought more information on its membership programs, as well as on the resignation of its CEO last month. Prep-Paid stock is currently trading down by 4.60% on the New York Stock Exchange.
The subpoena from the SEC has asked Pre-Paid Legal to provide documents relating to certain membership information, member complaints about provider law firms, the its efforts to achieve compliance with all payment card industry requirements, the resignation of Harland Stonecipher as chief executive officer and president, and the resignation of Tom Smith as a director.
On October 6, the company received a subpoena from the Division of Enforcement requiring it to produce a variety of documents pertaining to its treasury stock repurchase program, ADRS program and other marketing practices, membership statistical information, segment reporting, the FTC contingency disclosure and other operational practices.
The company said it would continue to cooperate with the staff of the SEC and seeks to resolve the matter.
PPD is currently trading at $38.75, down $1.90 or 4.67%, on a volume of 0.55 million shares.
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