Advanced Marketing Services Inc., the San Diego-based distributor of books to club warehouse stores, said trading of the company’s stock will be suspended from the New York Stock Exchange beginning April 19 after the firm’s request for a three-month extension to file its 2004 financial report was denied.
NYSE’s decision to suspend the stock trading was based on the firm’s inability to file its 2004 annual report on time and not on any new information uncovered in the audit process, AMS said.
The company said it anticipates its stock will continue trading on the privately operated Pink Sheets Electronic Quotation Service.
AMS has been the subject of a federal investigation into its accounting practices since 2003 when FBI agents raided the firm’s Sorrento Mesa offices.
So far, two advertising executives have pleaded guilty in a complex kickback scheme designed to falsely inflate the company’s revenues.
Another AMS executive has pleaded not guilty to a 33-count indictment handed down in March.