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CPI Corp CPY Securities Stock Fraud
The Complaint alleges that CPI and certain of its officers and directors violated the federal securities laws. Specifically, defendants concealed the following facts: (i) CPI's business was performing much worse than defendants acknowledged and was deteriorating; (ii) CPI's initiatives to grow the business were not working as represented; (iii) CPI's stock was not a "good investment" and the Company's stock buy-back was intended solely to project false confidence in the Company's prospects; and (iv) CPI's cash flows would continue to deteriorate due to poor revenue growth.
On December 22, 2011, CPI announced results for the fiscal quarter ended November 12, 2011. CPI reported a net loss of ($7.25) million and that net sales declined 11% to $95.0 million, due in significant part to the Company's comparable store sales declines. The results also meant that CPI had failed its leverage ratio test for its revolving credit facility. CPI had to obtain an amendment to its credit agreement. As a result, CPI will have to stop its dividend. On this news, CPI stock fell nearly 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 CPY Securities Fraud Legal HelpIf 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.
Last updated on Jan-16-12
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