Another lawsuit (the fourth one) just kicked in... The Law Firm of Levi & Korsinsky Notifies Investors with Losses on Their Investment in CPI Corp. of Class Action Lawsuit & th...
Today : Tuesday 17 January 2012
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Levi & Korsinsky announces that a class action lawsuit has been commenced in the United States District Court for the Eastern District of Missouri on behalf of investors who purchased CPI Corp. (“CPI” or the “Company”) (NYSE: CPY) common stock between April 20, 2010 and December 21, 2011 (the “Class Period”).
For more information, click here: http://zlk.9nl.com/cpi-corp-cpy
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business and financial results. In particular, the complaint alleges that defendants concealed the following facts: (a) CPI’s business was performing much worse than defendants acknowledged and was deteriorating; (b) CPI’s growth initiatives were not working at the levels represented by defendants; (c) CPI’s stock buy-back was intended solely to project false confidence in the Company’s prospects; and (d) CPI’s cash flows would continue to deteriorate due to poor revenue growth such that CPI’s capital structure was not as strong as defendants represented.
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 suffered a loss in CPI you have until March 13, 2012 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff. To obtain additional information, contact Joseph E. Levi, Esq. either via email at email@example.com or by telephone at (877) 363-5972, or visit http://www.zlk.com/cpi-corp-cpy.html
Levi & Korsinsky has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud and represents investors throughout the nation, concentrating its practice in securities and shareholder litigation. Attorney advertising. Prior results do not guarantee similar outcomes.