infoUSA Inc. [IUSA] CEO Vinod Gupta has, for the most part, thumbed his nose at those who have criticized his questionable spending habits. That's why we found it interesting to see a press release from the data marketing company announcing it was forming a special committee in response to shareholder litigation filed against the company and an investigation being conducted by the Securities and Exchange Commission over travel, entertainment and other questionable payments it made.

We'd like to think that formation of the new committee is an acknowledgement that the company recognizes the seriousness of the situation. However, It would have been nice if the committee was established before the SEC became involved and a judge allowed litigation against the company to proceed. 

We're suspect that infoUSA has finally seen the light and is truly is interested in getting to the bottom of any company malfeasance. Rather, it is likely trying to come up with ways to potentially limit its liability in the ongoing legal action and the SEC investigation by attempting to show it can police itself. -- David Shabelman

See Dec. 26 press release from infoUSA

See Aug. 15 post from TechConfidential

See Nov. 20 regulatory filing from infoUSA