(The news featured below is a selection from the news covered in the Federal Securities Report Letter, which is distributed to subscribers of the Federal Securities Law Reports.)

Reporting Violations Prompt Trading Suspensions

The SEC suspended trading in the securities of 26 companies for not making required periodic filings with the Commission. The SEC stated that because of these delinquencies, investors were unable to obtain current and accurate information about these companies. The trading suspensions will last for 10 business days. In addition to these trading suspensions, the Commission also instituted proceedings to determine whether to revoke or suspend the securities registrations of 25 companies, including 12 of those subject to the trading suspensions, for failing to make periodic filings. Ten of these companies simultaneously settled with the Commission and agreed to revocation of their securities registrations.

Alan L. Beller, director of the SEC's Division of Corporation Finance, said that "public companies must keep investors informed through accurate and timely periodic filings with the Commission." He added that "companies that shirk these responsibilities should realize that we will take action to revoke their stock registrations. " Larry West, associate director of the Division of Enforcement, remarked that "the periodic filing requirements are the cornerstone of our full disclosure system, and when companies fail to make their filings, investors can get hurt."