Lazare Kaplan Subject to SEC Proceeding

The Securities and Exchange Commission has instituted an administrative proceeding against Lazare Kaplan for its failure to file financial reports since 2009.

If the proceeding is successful, the SEC could revoke the company’s public registration, which would prevent trading or selling of its securities.

In response, Lazare Kaplan noted that it has been unable to resolve “material uncertainties” involving recovering certain assets and its credit obligations. This led the company to file a $500 million lawsuit against the now-defunct Antwerp Diamond Bank and owner KBC in 2011.

Lazare now says it expects to resolve the uncertainties over the next year. It is asking that the SEC’s proceeding be dismissed, but has suggested it would agree to a 12-month trading suspension.

JCK News Director