Hub Group works to stop stock de-listing

Feb. 22, 2002
Third party logistics conglomerate Hub Group is trying to prevent Nasdaq from de-listing its stock as it conducts an investigation into three year's worth of potentially flawed earnings and revenue statements. Lombard, IL-based Hub said last week that one of its subsidiaries, Hub Group Distribution Services (HGDS), may have overstated its earnings by $3 to $4 million over the last three years. Hub,
Third party logistics conglomerate Hub Group is trying to prevent Nasdaq from de-listing its stock as it conducts an investigation into three year's worth of potentially flawed earnings and revenue statements.

Lombard, IL-based Hub said last week that one of its subsidiaries, Hub Group Distribution Services (HGDS), may have overstated its earnings by $3 to $4 million over the last three years. Hub, which owns 65% of HGDS, is investigating HGDS's financial statements from 1999 to 2001.

However, Nasdaq informed Hub that, due to the accounting irregularities, Hub's public filings made during those fiscal years do not satisfy the company's obligation under Nasdaq's Marketplace Rule 4310(c)(14), which could subject Hub's stock to de-listing. This rule requires companies to maintain at least three years of audited financial statements, Nasdaq said.

About the Author

Sean Kilcarr | Editor in Chief

Sean previously reported and commented on trends affecting the many different strata of the trucking industry. Also be sure to visit Sean's blog Trucks at Work where he offers analysis on a variety of different topics inside the trucking industry.

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