Digital Media Solutions faces delisting as NY law firm launches investigation

Digital Media Solutions has told shareholders it faces being delisted from the New York Stock Exchange after falling out of compliance — news that came a day after a prominent New York law firm specializing in class action lawsuits announced it was investigating the company for violations of undisclosed state laws.

This is the second time since March the Clearwater company has been warned it faced delisting. That first violation in March was for trading for less than $1 for 30 consecutive days.

In the most recent note to investors, issued Thursday, May 4, the company says it received a letter from the exchange in late April saying it “is not in compliance with NYSE's continued listing standards which require it to maintain an average global market capitalization of at least $50 million over a consecutive 30-day trading period and, at the same time, a total stockholders’ equity equal to or greater than $50 million.”