Pre-Paid Says Feds Looking at Trading

Pre-Paid Legal (PPD Quote) wanted regulators to look into trading in its stock. Now it's getting its wish, sort of.

The Ada, Okla., provider of legal services said Thursday afternoon that the Securities and Exchange Commission and the U.S. attorney for New York were examining trading in the company's stock ahead of Pre-Paid's release this month of fourth-quarter recruiting results. The attorney general issued a subpoena on the matter, and the SEC is conducting an informal inquiry, Pre-Paid said.

The weak results, and the departure of the company's president, spurred a 25% selloff in Pre-Paid shares following the release of the recruiting report in mid-January. Since then, the stock has continued to fall; it traded at $17.50 in after-hours action Thursday following the latest disclosure. ...