K-Tel Facing More Than 20 Lawsuits

K-Tel -- the record label best-known for mail-order oldies compilations -- is facing more

than 20 lawsuits over allegations it concealed a warning from Nasdaq that it faced a

de-listing from the stock exchange because of low net assets, according to the

Bloomberg news service. The Minneapolis-based company's stock shot up in

April when it announced it would sell music over the Internet. But it plunged 43 percent in

mid-November, after it was revealed that K-Tel's reported $450,000 in tangible assets

did not meet the required $4 million to be traded on the Nasdaq exchange. The suits

reportedly allege that K-Tel knew about the Nasdaq warning when it announced in early

November that it would link its online sales to websites run by software giant Microsoft

and Playboy Enterprises Inc.