That does not disqualify them from doing another R/S even though it should. FINRA needs a reason like delinquent filings if they are a SEC filer, fraud investigation, civil judgment of fraud, bad actor involved, criminal conviction and/or a bunch of complaints to the SEC and FINRA by investors so that they take a close look and question the appropriateness of such a corporate action. Otherwise it could very likely sail through like a boat on a windy day...
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Buyer Beware Red Flags Galore... Ron Blackburn Scam