DNA Brands Inc (DNAX)

[Kristi]

Others say the move makes sense given the number of firms that now struggle with costly requirements to certify financial results and assess internal controls. Mr. Magill says going dark "is not a nefarious plot" to blind shareholders, but a way to save them money and retain their stake in the company. He estimates a smaller firm might save more than $1 million a year by going dark.



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Some executives say the cost savings are a big benefit. "I think it was one of the best moves we've made," says Terry Babilla, general counsel and chief operating officer at Dallas-based Sport Supply Group Inc., GE -0.93% whose stock is up since going dark last year. Sport Supply's stock fell under $1 on the news but bounced back toward $3, a level Mr. Babilla says it wouldn't have reached without going dark.