CPI Corp CPIC Securities Stock Fraud

Company:	CPI Corp
Ticker Symbol:	CPIC
Class Period:	Apr-20-10 to Dec-21-11
Date Filed:	Feb-27-12
Lead Plaintiff Deadline:	Apr-27-12
Court:	Eastern District of Missouri
Allegations:

Wilmington, DE A securities lawsuit has been filed in the United States District Court for the Eastern District of Missouri on behalf of all purchasers of the common stock of CPI Corp ("CPI"or the "Company") between April 20, 2010 and December 21, 2011 (the "Class Period"), alleging violations of the Securities Exchange Act of 1934 the "Complaint").

CPI is a holding company that engages in the sale of professional portrait photography, and related services, through its wholly owned subsidiaries. The Complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding CPI' business and financial results. Specifically, the Complaint alleges that defendants misrepresented that the Company' growth initiatives were working and that it was well positioned for growth. In fact, CPI' business was performing much worse than defendants acknowledged; CPI' initiatives to grow the business were not as successful as represented by defendants; the Company' stock buy-back was intended to falsely project confidence in the Company' prospects; and CPI' cash flows would continue to deteriorate because of poor revenue growth and CPI' capital structure was not as strong as defendants represented.

On December 22, 2011, the Company announced its financial results for quarter ended November 12, 2011, reporting a net loss of ($7.25) million, or ($1.03) diluted earnings per share for the quarter, and that net sales declined to $95.0 million, or 11%, due in large part to declining comparable store sales. As a consequence, CPI failed its leverage ratio test under its revolving credit facility, and was required to amend its credit agreement and cease paying its dividend. On this news, CPI stock declined $3.30 per share, to a close of $1.98 per share on December 22, 2011, a drop of almost 63%.

If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.

CPI Corp CPIC Securities Fraud Legal Help

If you have suffered from financial losses, you may qualify for damages or remedies that may be awarded in a possible CPI Corp securities class action lawsuit. Please click the link below to submit your complaint for a free evaluation.
Published on Feb-28-12