Nasdaq seeks info from Koss after shares frozen

AP News
Posted: Dec 22, 2009 6:53 PM

The Nasdaq Stock Market said Tuesday it has changed the status of Koss Corp.'s trading halt to a request for additional information, after the exchange froze trading in the shares Monday on pending news.

WISN-TV in Milwaukee, where the maker of headphones and other electronic accessories is based, reported Monday that a Koss vice president of finance was arrested and charged with wire fraud. Sujata Sachdeva, who has worked at the headphone manufacturer since 1992, was accused of embezzling $4.5 million and spending much of it on clothes and jewelry. More than a dozen federal agents took her into custody and removed items from her home in Mequon, WISN-TV reported.

On Monday, Koss said it had discovered unauthorized transactions and that Sachdeva had been put on administrative leave as the board conducted an internal investigation. The company said it needed to determine if the transactions affected the company's financial statements.

The shares were halted at $5.51.