The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired CPI Aerostructures Inc. (CPI” or the Company) (NYSE: CVU) securities between May 15, 2018 and February 14, 2020 inclusive (the Class Period). CPI investors have until April 24, 2020 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On February 8, 2019, CPI announced that its previously issued financial statements for the three and nine months ended September 30, 2018 should no longer be relied upon due to an error related to the Companys billing process which caused an overstatement of revenue.
On this news, CPIs share price fell 8.5% to close at $6.34 per share on February 8, 2019, thereby injuring investors.
Then, on February 14, 2020, CPI announced that its financial statements for fiscal 2018 and 2019 should no longer be relied upon because certain revenues and net income were recognized prematurely or inaccurately. Additionally, the Company announced that its Chief Financial Officer had resigned.
On this news, the Companys stock price fell $1.80, or nearly 27%, to close at $4.87 per share on February 14, 2020, thereby injuring investors further.
The complaint alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) CPI Aerostructures financial statements included in its Forms 10-Q for the first, second, and third quarters of 2018 and of 2019 incorrectly applied generally accepting accounting principles and thus revenue, net income, retained earnings, and contract assets were overstated; (2) as a result, the financial statements included in the Form 10-Qs for 2018 and for 2019 and the annual report on Form 10-K for 2018 could no longer be relied upon and required restatement; (3) CPI Aerostructures lacked adequate internal controls over financial reporting and effective disclosure controls and procedures as of the period during each reporting period of 2018; (4) CPI Aerostructures lacked effective disclosure controls and procedures during the third quarter of 2019; and (5) as a result, CPI Aerostructures public statements were materially false and/or misleading at all relevant times.
Follow us for updates on Twitter: twitter.com/FRC_LAW.
If you purchased CPI securities during the Class Period, you may move the Court no later than April 24, 2020 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased CPI securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to email@example.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.