The Golden Lounge

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Reverse splits fall under state not federal law here. Thus, the SEC has no power in this area. Of the dozen or so states I've checked in the past, none of them had limitations on how many r/s a company can do.

Think of each state here as being an individual country which is free to make its own unique laws within its borders. When the federal government decides something needs to be standardized across all the states, they'll take control and govern it at the federal level. Unfortunately, they haven't done this for r/s.

Back in the 2003, the SEC filed a lawsuit against Pacel, their CEO, and some other outfits on different issues which do fall under federal law. http://www.sec.gov/litigation/complaints/comp18057.htm This case is still working its way thru the court system. Pacel may end up having their stock's registration eventually revoked, but it won't be over multiple r/s. Those are legal to do in their state of incorporation.