BOSTON, Feb. 19, 2020 (GLOBE NEWSWIRE) -- Block & Leviton LLP (www.blockesq.com), a National Securities Litigation law firm, is investigating claims against CPI Aerostructures, Inc. (NYSE: CVU) and its officers and directors for potential violations of the federal securities laws.
On February 8, 2019, CPI announced that its previously issued financial statements for the three and nine months ended September 30, 2018 should no longer be relied upon due to an error related to the Company’s billing process which caused an overstatement of revenue. According to the announcement, management had determined that a material weakness existed in the Company’s internal control over financial reporting and promised to implement a plan to remediate the material weakness.
On this news, CPI’s share price fell 8.5% to close at $6.34 per share on February 8, 2019, thereby injuring investors.
Then, on February 14, 2020, CPI announced that its financial statements for fiscal years 2018 and 2019 should no longer be relied upon because “certain revenues and net income were recognized prematurely or inaccurately.” In addition, the Company announced that the independent auditor’s reports on the effectiveness of internal control over financial reporting, as well as the management’s reports on the effectiveness of internal control over financial reporting, press releases, and investor communications describing the Company’s financial statements for these periods should no longer be relied upon. The Company also announced the resignation of its Chief Financial Officer.
On this news, the Company’s stock price fell $1.80, or nearly 27%, to close at $4.87 per share on February 14, 2020, thereby injuring investors further.
“These recurring accounting errors are concerning, and we are focused upon the potential recovery of investor losses” said Mark Delaney, the Block & Leviton attorney leading the investigation.
If you purchased or otherwise acquired CPI Aerostructures securities and have questions about your legal rights, or possess information relevant to this matter, you are encouraged to contact attorney Mark Delaney at (617) 398-5600, by email at mdelaney@blockesq.com, or by visiting https://shareholder.law/cases/?case=cpi. Confidentiality for whistleblowers is assured.
Block & Leviton LLP was recently ranked 4th among securities litigation firms by ISS for recoveries in 2017. The firm represents many of the nation's largest institutional investors and numerous individual investors in securities litigation throughout the country. Indeed, its lawyers have recovered billions of dollars for its clients.
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CONTACT:
BLOCK & LEVITON LLP
Mark Delaney
(617) 398-5600 phone
260 Franklin Street, Suite 1860
Boston, MA 02110
mark@blockesq.com