AMEX Warns Lazare Kaplan of Delisting

Struggling diamond firm Lazare Kaplan International (LKI) received a deficiency letter from the NYSE Regulation on behalf of NYSE AMEX warning the company that it is in violation of its listing and may, as a result, be delisted for failure to file its quarterly report.

Earlier this month, LKI notified the Securities and Exchange Commission that it will be late in filing its quarterly report. In response, AMEX on Monday notified LKI that the timely filing of such reports is a condition for the company's continuing listing on the exchange and failure to do so is a material violation of its listing agreement. 

AMEX is now authorized to suspend, and unless prompt corrective action is taken, remove LKI's common stock from the exchange.

LKI has until May 31, 2010 to comply with the listing standards according to a plan of compliance it submitted to the exchange.

The diamond company said that it continues its efforts to resolve what it calls "material uncertainties." It currently estimates net first quarter sales at approximately $28.9 million.