Wednesday December 1, 6:33 pm Eastern Time
Coyote Network says SEC terminates inquiry, no action
WASHINGTON, Dec 1 (Reuters) - Coyote Network Systems Inc. (NasdaqNM:CYOE - news), provider of telecommunications equipment and international and long distance services, said on Wednesday the Securities and Exchange Commission has terminated its inquiry in the company without taking any enforcement action.
The SEC and Nasdaq asked the company to provide documents and other material after heavy trading volume in Coyote Network was sparked by published articles by TheStreet.com (NasdaqNM:TSCM - news) in December 1998 questioning a reported equipment sale through Condisco Inc. to Crescent Communications.
''The articles implied that Crescent Communications Inc. did not exist, leading to the conclusion that the sale was not valid,'' Coyote Network said in its annual report filed in July.
One article also discussed a registration statement indicating that numerous insiders were ''poised to sell huge chunks'' of their holdings, the annual report said.
Trading in the stock reached about 2.2 million shares, much higher than historical levels and the stock plummeted more than 50 percent in value, the company said.
Nasdaq suspended trading in the stock on Dec. 10, 1998, and allowed the resumption of trading after Coyote Network clarified the transaction to the public.
Coyote shares closed at 14-1/2 on Dec. 8, 1998, before the published reports and fell to as low as 6-9/16 shortly after the articles on the transaction.
On Wednesday, Coyote shares closed up 25/32 at 5-7/16 on Nasdaq |
