Trading in Canoga Park Firm’s Stock Halted

Styles on Video Inc., a Canoga Park-based maker of computer imaging systems used in hair salons, said trading of the company’s stock on the American Stock Exchange has been halted until its 1994 financial records are audited and reviewed by the exchange.

Trading of Styles on Video’s stock was halted in December after the company’s independent accountants and chief financial officer resigned, and following the release of an industry analyst’s report that cited accounting irregularities at the firm.

Styles said it hopes to hire a new auditing firm and chief financial officer soon, but Charles F. Plumb, a corporate turnaround expert hired last month as company president, said the selection process has been slowed because most auditing firms are overburdened with tax work at this time of year.

The company has also been named in a lawsuit alleging violations of federal securities laws, Plumb said.