Gilman Law Announces Lead Plaintiff Deadline for CPI Corp. Class Action Securities Fraud Lawsuit
The Naples Florida office of Gilman Law LLP, a leading national securities law firm, is actively investigating securities fraud allegations in a class action securities fraud lawsuit against CPI Corp. (“CPI”) and certain of its officers and directors violated the Securities Exchange Act of 1934, for issuing materially false or misleading information to investors during the period between April 20, 2010 and December 21, 2011. CPI Corp. (NYSE: CPY) is a holding company engaged, through its wholly owned subsidiaries, in selling and manufacturing professional portrait photography of young children, individuals and families and other related products and services.
The Complaint charges CPI with issuing materially false and misleading statements regarding the Company’s business and financial results and violating federal securities laws. Specifically, defendants concealed the following facts: (1) CPI’s business was performing much worse than defendants acknowledged and was deteriorating; (2) CPI’s initiatives to grow the business were not working as represented; (3) 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 (4) 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 subsequently obtained an amendment to its credit agreement. As a result, CPI will have to stop its dividend. On this news, CPI stock fell nearly 63%.
How To Join The CPI Corp. Class Action Securities Fraud Lawsuit
If you purchased or otherwise acquired the stock of CPI Corp. (NYSE: CPY) during the period between April 20, 2010 and December 21, 2011 and either lost money on the transaction or still hold the shares, please contact the securities law firm of Gilman Law LLP by March 13, 2012, to discuss your rights to recovery of your losses or to obtain additional information. If you wish to join the CPI class action lawsuit, CALL TOLL FREE at (888) 252-0048.
About The Leading National Securities Law Firm Gilman Law LLP
The leading national securities law attorneys at Gilman Law have over 32 years of combined experience litigating securities and other class action cases, and have been involved in all major aspects of securities litigation. The leading national securities law firm of Gilman Law specializes in cases involving stock manipulation, securities fraud, investment fraud, and shareholder rights violations. The securities lawyers at Gilman Law also have extensive experience representing both individual and institutional investors in securities class action suits. The national securities law firm of Gilman Law has recovered over a billion dollars for its clients and can help you recover any losses that you have incurred as a result of CPI’s fraudulent practices.