Greyhound Disclosed SEC Investigation Into Securities Allegations
DALLAS (AP) _ The Securities and Exchange Commission is looking into the allegations of insider trading and securities violations by Greyhound Lines Inc. detailed in several class-action lawsuits, the company said Wednesday.
Greyhound said it learned Monday of the investigation into ``the company and its former and present directors, officers, employees and other persons.″
The company said it believes it is innocent.
``Management and the board does not believe that the company has violated any securities laws and we believe that the SEC ultimately will agree with that conclusion,″ president and chief executive officer Craig Lentzsch said.
The SEC will study possible insider trading and whether the company disclosed enough about problems with its computerized passenger reservation system, known as TRIPS, and lower-than-expected earnings in 1993, Greyhound said.
``It does not appear from the order that the company is a target of the insider trading portion of the investigation. The order does not identify those individuals who are targets of the investigation,″ the bus company said in a news release.
The SEC also will scrutinize Greyhound’s accounting and whether it kept good enough records about the troubled and expensive reservation system.
Greyhound, the only nationwide intercity bus carrier, has limped through a string of losses and last month completed a financial restructuring to avoid an involuntary bankruptcy reorganization. The company doesn’t expect to make money this year.
Several class-action lawsuits have been filed against Greyhound by shareholders and bondholders since last summer. Targets have included former president and CEO Frank Schmieder, who resigned under pressure in August, and chief financial officer J. Michael Doyle.
Lentzsch, who took over at Greyhound in November, said the SEC investigation involves the same issues raised in the lawsuits, which the company previously has disclosed.
``Greyhound intends to cooperate fully with the SEC in resolving this matter as expeditiously as possible so that the newly restructured company can continue its turnaround efforts without further distraction,″ he said.