A lawsuit was filed on behalf of investors in CPI Card Group Inc (NASDAQ:PMTS) shares over alleged securities laws violations and NASDAQ:PMTS investors should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 06/20/2016 -- An investor, who purchased shares of CPI Card Group Inc (NASDAQ:PMTS), filed a lawsuit in New York over alleged Securities Laws violations by CPI Card Group Inc in connection with its October 8, 2015 initial public offering.
Investors who purchased shares of CPI Card Group Inc (NASDAQ:PMTS) have certain options and for certain investors are short and strict deadlines running. Deadline: August 15, 2016.. NASDAQ:PMTS investors should contact the Shareholders Foundation at firstname.lastname@example.org or call 858-779-1554.
According to the complaint the plaintiff alleges that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that CPI Card Group Inc, certain of its officers and directors, the underwriters of CPI's IPO and certain selling shareholders violated the Securities Act of 1933.
CPI Card Group Inc conducted its initial public offering ("IPO") on October 8, 2015. The IPO was successful for CPI Card Group Inc, the selling stockholders and the underwriters who sold 17.25 million shares of CPI Card Group Inc common stock at $10 per share, raising $172.5 million in gross proceeds.
The plaintiff alleges that alleges that at the time of the IPO, unbeknownst to investors, CPI Card Group Inc had shipped upwards of 100 million more cards to its larger issuer customers than they were using in the second quarter and first part of the third quarter of 2015, resulting in the buildup of a massive backlog with those customers, which was significantly reducing the demand for additional card shipments in the fourth quarter of 2015 and fiscal 2016. The plaintiff says that the adverse events and uncertainties associated with CPI Card Group's largest customers' inventory levels was reasonably likely to have a material impact on CPI Card Groups profitability and, therefore, was required to be disclosed in the Registration Statement, but was not.
CPI Card Group Inc reported that its annual total Revenue rose from $261.01 million in 2014 to $374.11 million in 2015 and that its Net Income increased from $13.30 million in 2014 to $30.86 million in 2015.
On May 11, 2016, CPI Card Group Inc reported its first quarter 2016 results and revised its fully year 2016 financial outlook.
Shares of CPI Card Group Inc (NASDAQ:PMTS) declined from $7.85 per share on May 11, 016 to $3.54 per share on May 19, 2016.
Those who purchased shares of CPI Card Group Inc have certain options and should contact the Shareholders Foundation.
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