Chantal to Name Successor To Chief Financial Officer
April 27, 2011
LOS ANGELES -- Chantal Pharmaceutical Corp., whose stock dropped more than 23% on Tuesday after its auditors Coopers & Lybrand quit unexpectedly, said it will name a new chief financial officer within a couple of days. Gay Powers resigned as the company's chief financial officer last month. The company, which makes antiwrinkle cream and other products, has been fighting a spate of negative publicity amid a tumbling stock price and poor financial results. The company also said Wednesday it is already interviewing auditors to replace Coopers & Lybrand, which didn't state its reason for resigning. The company hired Coopers & Lybrand in January, stating specifically that the move was directed at quieting concerns about its product distribution. Shares of Chantal recovered slightly Wednesday. The stock closed at $2.813, up 12.5 cents from its Tuesday close of $2.688 but still considerably below its Monday price of $3.50. Earlier this month, the Securities and Exchange Commission filed suit in federal district court here against two people for alleged insider trading in connection with Chantay. The SEC alleged that a onetime Chantal consultant and another person used insider information to avoid about $50,000 in losses from the sale of Chantal stock. In this case, the company isn't accused of any wrongdoing.
