NEW YORK, June 19, 2016 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in CPI Card Group, Inc. (“CPI” or the “Company”) (NASDAQ:PMTS) of the August 15, 2016 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased CPI common stock in connection with CPI’s October 8, 2015 initial public offering (“IPO”) (the “Class Period”). The case, Vance v. CPI Card Group Inc. et al, No. 1:16-cv-04531 was filed on June 15, 2016, and has been assigned to Judge Lewis A. Kaplan.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that CPI shipped up to 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. This resulted in 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 Complaint alleges that the events and uncertainties in connection with CPI's largest customers' inventory levels was likely to have an impact on CPI's profitability and, therefore, was required to be disclosed in the Registration Statement, but was not.
CPI's share price has fallen from its IPO price of $10.00 per share to a closing price of $4.65 per share on June 16, 2016 —a $5.35 or a 53.50% drop.
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Take Action
If you invested in common stock or options in connection with CPI’s October 8, 2015 IPO and would like to discuss your legal rights, visit www.faruqilaw.com/PMTS. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding CPI’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class that is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
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