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UPDATE 1-Pre-Paid Legal says SEC probe seeks more information
April 15, 2010 / 4:26 PM / 7 years ago

UPDATE 1-Pre-Paid Legal says SEC probe seeks more information

* Gets second subpoena from SEC

* Shares fall as much as 15 pct

April 15 (Reuters) - Pre-Paid Legal Services Inc PPD.N said it received another subpoena from regulators, seeking more information about its membership programs and the resignation of its chief executive last month.

Shares of the company, which provides legal service benefits plans through a network of independent law firms across the United States and Canada, fell as much as 15 percent to a low of $34 before paring some of those losses to trade down 5 percent.

The subpoena, issued by the Securities and Exchange Commission, has also sought documents relating to member complaints about provider law firms and efforts to achieve compliance with payment card industry requirements.

The company said it will continue to cooperate with the SEC and seek a resolution.

In October last year, the SEC had asked the company to produce documents pertaining to its treasury stock repurchase program, Affirmative Defense Response System (ADRS) program and membership statistical information, among others. [ID:nBNG543859] (Reporting by Shobhana Chadha in Bangalore)

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