When were the auditions held? Why was it never made? Did it have anything to with Maureen Marder (whose real life the film was based on) not wanting a sequel?
There were discussions about a sequel, but the film was never made. Jennifer Beals turned down an offer to appear in a sequel, saying: "I've never been drawn to something by virtue of how rich or famous it will make me. I turned down so much money, and my agents were just losing their minds."
The first one was such a huge hit that I'm surprised they didn't just change the focus to a different character in a similar situation. It wouldn't be the first time a sequel did this (Mannequin 2). New town. New girl. Same basic story.