San Diego, CA -- (SBWIRE) -- 04/24/2012 -- An investigation on behalf of investors of DGSE Companies, Inc. (NYSEAMEX:DGSE) shares over potential securities laws violations by DGSE Companies, Inc. and certain of its directors and in connection with certain statements was announced.
Investors who purchased shares of DGSE Companies, Inc. (NYSEAMEX:DGSE) have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of DGSE Companies, Inc. (NYSEAMEX:DGSE) concerning whether a series of statements by DGSE Companies, Inc. regarding its business, its prospects and its operations were materially false and misleading at the time they were made.
DGSE Companies, Inc. reported that its annual Revenue fell from $101.22million in 2008 to $82.57million in 2010, but its Net Loss of $7.85million in 2008 turned into a Net Income of $5.66million in 2010. For the first three quarters in 2011 DGSE Companies, Inc. reported a combined nine month Revenue of $105.58million with a nine months combined Net Income of $1.10million.
Then on April 16, 2012, DGSE Companies, Inc. disclosed that on April 13, 2012, its Board of Directors determined the existence of certain accounting irregularities beginning approximately during the second calendar quarter of 2007 and continuing in periods subsequent thereto, which could affect financial information reported since that time. DGSE Companies said it believes that the accounting irregularities are the result of improper accounting of inventory and other balance sheet accounts by its former Chief Financial Officer.
On April 17, 2012 DGSE Companies, Inc. announced that trading in its common stock has been halted on the American Stock Exchange effective 9:30AM EDT. DGSE Companies, Inc said the trading halt is the result of its inability to comply with certain information disclosure requirements of the American Stock Exchange.
Those who purchased shares of DGSE Companies, Inc. (NYSEAMEX:DGSE) and currently hold those NYSEAMEX:DGSE shares, may have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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