Here's what happened:
NEW YORK (Dow Jones)--Shares of Aura Systems Inc. (AURA) set a 52-week low in heavy
trading after the company revealed that Securities and Exchange Commission staff was
recommending charges against it, Chief Executive and President Zvi Kurtzman, and a former
official.
In a 10-K filed today, the company said the staff intends to allege violations of the reporting,
books and records, and anti-fraud provisions of the securities law.
The charges stem from the staff's claim that Aura should have disclosed more details about its
transactions with client Micro Computer Distribution Power, the company said. The charges,
which spring from an SEC investigation begun in 1992, also related to Aura's reporting of its
business arrangement with John Jory Corp. in a 10-Q for the nine months ended Nov. 30, 1993.
Aura doesn't anticipate that the staff will seek any monetary penalties from it, Kurtzman or the
former officer. The company said it also doesn't believe it will have to restate past financial
statements or amend reports with the SEC.
The company said its outside counsel is meeting with the staff to resolve the matter but ''there can
be no assurances that such a resolution will be achieved.''
Aura was down 1 3/8, or 34.4%, at the new low of 2 5/8 on Nasdaq volume of 2.8 million
shares, compared with average daily volume of 482,400. |
