A.C.L.N. shares plunge on news of SEC probe
NEW YORK, Jan 7 (Reuters) - Shares of A.C.L.N. Ltd. <ASW.N> dropped as much as 29 percent on Monday after the car transport company's announcement that the Securities and Exchange Commission had begun an investigation into its financial disclosures.
"The SEC staff has advised the company that it had serious questions regarding disclosures made by A.C.L.N in Commission filings," A.C.L.N. said in a statement late on Friday.
The Belgium-based firm, which arranges for the transport of new and used cars from Europe to Africa, also said eight class action shareholder lawsuits had been filed against it and certain shareholders, directors, and officers.
"It's basically been one surprise after another," said Bill Block of research firm WAB Capital, noting that the stock's drop couldn't be attributed only to the investigation.
"The company has been MIA, the SEC is investigating it, plus there was another announcement that logistics customers don't want to prepay for the services A.C.L.N. supplies," Block said.
A.C.L.N. said in the statement announcing the SEC probe on Friday that "dealers who traditionally make prepayments to use (its) logistics services to ship cars to Africa are refusing to prepay."
The company's stock was down $2.45, or 23.8 percent, at $7.85 in midday trading, after plunging to a low earlier Monday of $7.26 on the New York Stock Exchange.
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