Centennial stock plunges 81%

The embattled memory card manufacturer resumes trading after a class-action suit. It may wish it hadn't.

Paul Festa Staff Writer, CNET News.com
Paul Festa
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Paul Festa
Wall Street dealt embattled PC Card and memory card maker Centennial Technologies (CTN) a blow as the company's stock plummeted 81 percent today when it resumed trading.

Centennial's stock closed at 3-1/8, down 13-3/8 from February 11.

Trading of Centennial stock had been halted on February 12 after the company acknowledged it had to re-review its financial statements, and company chairman, CEO, and secretary Emanuel Pinez and chief financial officer James M. Murphy were fired.

A class-action suit has been filed against Centennial Technologies on behalf of buyers of its common stock for the class period from August 21, 1996 to February 10, 1997. The suit charges that the company--along with Pinez and Murphy--made material misrepresentations in the company's financial statements.

Centennial's stock had traded as high as $55.50 per share during the class period. The company, which reported 1996 net income of $4.9 million, will restate its financial results for that year and is expected to post a loss. The New York Stock Exchange said it planned to seek delisting the company from the exchange, according to the Wall Street Journal.