NEW YORK, June 17, 2016 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against CPI Card Group Inc. (“CPI” or the “Company”) (Nasdaq:PMTS) in the United States District Court for the Southern District of New York on behalf of purchasers of CPI common stock in connection with CPI’s October 8, 2015 initial public offering (“IPO”), including purchasers of the common stock in the aftermarket. The Complaint charges CPI, certain of its officers and directors, the underwriters of CPI’s IPO and certain selling shareholders with violations of the Securities Act of 1933.
According to the Complaint, at the time of the IPO, unbeknownst to investors, CPI 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 adverse events and uncertainties associated with CPI’s largest customers’ inventory levels was reasonably likely to have a material impact on CPI’s profitability and, therefore, was required to be disclosed in the Registration Statement, but was not disclosed.
If you wish to serve as lead plaintiff, you must move the Court no later than August 15, 2016. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.