In an effort to remain listed on the Nasdaq, downtown Los Angeles legal newspaper publisher Daily Journal Corp. has fired accounting firm Ernst & Young and hired BDO USA as its new auditor.
Daily Journal, led by Chairman Charlie Munger, said in a statement last week that it hired BDO this month as part of an effort to regain compliance with Nasdaq, which notified the company that its stock was to be delisted after failing to file two quarterly reports by a June 30 deadline.
Daily Journal blamed the delays on Ernst & Young, which it fired late last month. The company’s filings have been repeatedly delayed in recent months after the increased value of Daily Journal’s investment portfolio triggered additional reporting requirements.
The delisting notification came as no surprise to the company or investors.
Daily Journal shares continue to trade on the exchange. In similar situations, shares usually continue trading for 15 days after an appeal is made. Daily Journal is requesting an extension to allow its new auditor to review its first two months of financial results. The company believes it will be in compliance with the Nasdaq after filing results for the two outstanding quarters.
Daily Journal shares dropped $5.61, or 2.9 percent, to $191.39 in Monday trading on the Nasdaq.