Eagle Building to Restate Earnings for Two Years (Update2)
By Anna Dubrovsky
Boca Raton, Florida, Feb. 14 (Bloomberg) -- Eagle Building Technologies Inc., which makes concrete blocks and doors for construction projects in markets outside the U.S., said it will restate earnings for at least the last two years and asked regulators to suspend trading of its stock.
The shares tumbled $3.07, or 68 percent, to $1.44 after earlier touching a 52-week low of $1.30. They have fallen 87 percent this year.
The company will restate earnings because its development projects in India, which accounted for most of the revenue reported by the company in 2000 and 2001, are ``a fiction,'' said Meyer Berman, a director of the company and its largest shareholder.
Berman, who owns about 30 percent of the shares of Boca Raton, Florida-based Eagle, said Chairman and Chief Executive Officer Anthony D'Amato ``misled'' him and other investors about the company's construction business in India. D'Amato also lied on his resume, Berman said.
The company asked the Securities and Exchange Commission to suspend trading of its shares on the over-the-counter Bulletin Board, according to a filing with the SEC.
D'Amato couldn't be reached for comment.
Resume Claims
D'Amato, who never graduated from college, said in his resume he had received a bachelor's degree in finance from Long Island University's C.W. Post College, said Charles Moskowitz, director of investor relations for Eagle. D'Amato took courses at several colleges, including C.W. Post, though he never completed the graduation requirements, Moskowitz said.
D'Amato joined Eagle as a director in April 1999 and became chairman a month later. He was CEO from June 1999 to October 2001, when Paul-Emile Desrosiers was named to the post. D'Amato reassumed his duties as CEO when Desrosiers was fired a short time later, Moskowitz said.
Desrosiers is now suing the company, alleging wrongful termination and requesting reinstatement, Moskowitz said.
Eagle makes mobile equipment for building low-cost, energy- efficient housing, particularly in regions that are prone to hurricanes, earthquakes and other natural disasters. |
