A lawsuit was filed by an investor in CPI Corp. (NYSE:CPY) filed a lawsuit over alleged securities laws violations
San Diego, CA -- (SBWIRE) -- 01/30/2012 -- The Shareholders Foundation announces that an investor in NYSE CPY shares filed a lawsuit in the U.S. District Court for the Eastern District of Missouri against CPI Corp. over alleged Violations of Federal Securities Laws by issuing allegedly materially false and misleading financial statements.
Those who purchased CPI Corp. (NYSE:CPY) shares, including but not limited to those who between April 20, 2010 and December 21, 2011, have certain options and there are strict and short deadlines running. Deadline: March 13, 2012. NYSE CPY stockholders should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleges on behalf of purchasers of CPI Corp. (NYSE:CPY) common stock during the period between April 20, 2010 and December 21, 2011, that CPI Corporation and certain of its officers and directors violated the Securities Exchange Act of 1934 by allegedly issuing materially false and misleading statements regarding CPI Corp’s business and financial results.
Specifically the plaintiff alleges that the defendants represented that CPI Corp’s initiatives to grow the business were working, that it was well positioned for growth and that its stock was a "good investment" when it was trading at $22 per share.
Then on December 22, 2011, CPI Corp. had announced its financial results for its third fiscal quarter ended November 12, 2011. CPI Corp. reported a net loss of ($7.25) million or ($1.03) diluted earnings per share for the third quarter and that net sales declined 11% to $95.0 million.
Shares of CPI Corp. (Public, NYSE:CPY) traded in December ’08 at over $30 per shares but have since then lost substantially value and traded recently at slightly above $1.50 per share.
Those who purchased shares of CPI Corp. (Public, NYSE:CPY) have certain options and should contact the Shareholders Foundation.