TUMULT FOR TURBODYNE; STOCKS PLUMMET; ARBITRATION RULING TO COST MORE THAN $6 MILLION.Byline: Ben Sullivan Daily News Staff Writer On the same day trading Day trading Establishing and liquidating the same position or positions within one day's trading. resumed in shares of Turbodyne Technologies Inc., the company said Monday that it lost an arbitration battle with Granada Hills-based Grand Technologies Inc. and has been ordered to pay the firm more than $6 million. Turbodyne shares closed down $1.0975, or 20 percent, to close at $4.25 in European trading on the Easdaq, a Brussels, Belgium-based stock exchange modeled after the Nasdaq. Easdaq in mid-January halted trading in Turbodyne shares after opening an investigation into whether the company intentionally misled mis·led v. Past tense and past participle of mislead. investors about its earnings prospects. Following Easdaq's lead, Nasdaq similarly halted trading of Turbodyne stock in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and said it will not resume trading until it finishes its own investigation. In a statement released late last week, Easdaq said it found Turbodyne did not intentionally mislead mis·lead tr.v. mis·led , mis·lead·ing, mis·leads 1. To lead in the wrong direction. 2. To lead into error of thought or action, especially by intentionally deceiving. See Synonyms at deceive. investors in a series of press releases last year but had given an ``over-optimistic impression'' of the firm's prospects. Turbodyne spokesman Peter Weichselbraun declined to comment on the Easdaq release. But in its own statement last week the company did say it could not guarantee that several previously announced business deals would go through, including separate partnerships with Royal Dutch/Shell and Trans Business Group, a Russian firm. Analysts responded harshly to Turbodyne's Monday stock performance. ``It's a complete loss of investor confidence,'' Vincent Neefs, an analyst at Smeets Securities, told Bloomberg News. ``Stay away.'' Turbodyne generated the bulk of its $39.2 million in 1997 revenues from sales of aluminum parts to the automotive industry The automotive industry is the industry involved in the design, development, manufacture, marketing, and sale of motor vehicles. In 2006, more than 69 million motor vehicles, including cars and commercial vehicles were produced worldwide. . In addition, the company sells technology it claims can cut pollution and improve the efficiency of internal combustion engines Internal combustion engine A prime mover, the fuel for which is burned within the engine, as contrasted to a steam engine, for example, in which fuel is burned in a separate furnace. . It was projected sales of this ``Turbopack'' technology that got the company in trouble with regulators. In separate news, the company said Monday that an arbitration judge ruled against it and has ordered Turbodyne to pay Grand Technologies $6.65 million for negligent negligent adj., adv. careless in not fulfilling responsibility. (See: negligence) misrepresentation misrepresentation In law, any false or misleading expression of fact, usually with the intent to deceive or defraud. It most commonly occurs in insurance and real-estate contracts. False advertising may also constitute misrepresentation. , breach of contract and breach of a purchase order. The charges stem from a multimillion-dollar purchase of Grand Technologies products by Turbodyne last year that Turbodyne canceled at the last minute. Grand Technologies officials could not be reached Monday for comment. The amount Turbodyne has been ordered to pay is more than two-thirds of its sales in the third quarter of last year. The company had a third-quarter net loss of $4.23 million. Turbodyne said it will appeal the decision. |
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