Lanham-based Radio One is facing delisting from the Nasdaq for missing two filing deadlines to correct accounting for past stock-option grants in accordance with the Sarbanes-Oxley Act.

The Nasdaq sent out delisting notices on March 19 and again on May 15.

“To be delisted means the company is pulled from the publicly traded market,” Nasdaq spokesman Wayne Lee said. Nasdaq lists more than 3,200 companies, and businesses must comply with the law in order to remain listed.

“If a company is delisted, it is a tougher process to become relisted; it is very stringent,” Lee said.

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Radio One has four radio stations in Maryland, WERQ-FM 92Q Jams, WWIN-FM Magic 95.9, WOLB-AM 1010 and WWIN-AM Spirit 1440.

The company recently sold 10 radio stations in Ohio and Kentucky, which had small populations of Radio One’s target: black and urban listeners.

Calls to Radio One’s Chief Financial Officer Scott Royster went unanswered Tuesday.

In a company news release, Radio One said its audit committee has undertaken a voluntary review of stock option-granting practices. It expects to restate company financial statements to record additional stock-based compensation expenses on certain grants.

Radio One received a hearing May 3, then requested an extension to file the required documents. The hearing panel has not yet ruled on the extension or delisting. Radio One is trading under a conditional listing.

Sarbanes-Oxley is a federal law passed in efforts to restore public trust after major corporate and accounting scandals like the one that led to Enron Corp.’s collapse.

Radio One hopes the Nasdaq will stay a decision until it can revise its financial statements.

Radio One is the nation’s seventh-largest radio broadcasting company.

Trading as ROIA, it closed unchanged Tuesday at $7.52 per share.

rchappelle@baltimoreexaminer.com