NEW YORK, March 4, 2020 /CNW/ -- Pomerantz LLP is investigating claims on behalf of investors of CPI Aerostructures, Inc. ("CPI" or the "Company") (NYSE: CVU). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.
The investigation concerns whether CPI and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On February 8, 2019, CPI filed a Form 8-K with the SEC, reporting that its previously filed quarterly report for the third quarter of 2018 should no longer be relied upon. Specifically, CPI disclosed that during the three and nine months ended September 30, 2018, the Company's revenue was overstated by $900,000 to $950,000, net income was overstated by $725,000 to $775,000, and as a result, earnings per share were overstated by $0.09 per share for each such period. CPI also disclosed that management determined that the Company had a material weakness in its internal control over financial reporting as of September 30, 2018 and that its disclosure controls and procedures were not effective.
On this news, CPI's stock price fell $0.59 per share, or 8.51%, to close at $6.34 per share on February 8, 2019.
Then, on February 14, 2020, CPI issued a press release, entitled "CPI Aerostructures to Restate Fiscal 2018 and Year-to-Date Fiscal 2019 Financial Statements as a Result of Errors in Connection With Revenue Recognition Under ASC Topic 606," which announced that its financial statements for the fiscal year 2018 and year-to-date for 2019 could no longer be relied upon.
On this news, CPI's stock price fell $1.80 per share, or 26.99%, to close at $4.87 per share on February 14, 2020.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
SOURCE Pomerantz LLP