NEW YORK, March 7, 2015 (GLOBE NEWSWIRE) -- Tripp Levy PLLC, a leading national securities law firm, announces that a federal securities class action lawsuit was filed against Appliance Recycling Centers of America, Inc. ("ARC" or the "Company") (Nasdaq: ARCI ) and certain of its officers. The lawsuit was filed in the United States District Court for the Central District of California, Case Number 2:15-cv-01654, on behalf of all persons or entities that purchased the common stock of ARC between March 15, 2012 and February 11, 2015 (the "Class Period").
The complaint alleges that defendants made false and misleading statements in connection with potential accounting irregularities by the Company. Specifically, the complaint alleges, among other things, that (i) ARC's financial statements contained errors concerning sales tax related to its appliance replacement programs; and (ii) the Company lacked adequate internal controls over its financial reporting. On August 6, 2014, the Company announced that the California Board of Equalization ("BOE") was conducting an examination of sales and use taxes covering ARC's appliance replacement sales. Thereafter, on February 11, 2015, the Company announced that it expects an assessment of at least $4.0 million from the BOE, and will need to restate its previously issued financial statement for the years ended December 28, 2013, December 29, 2012 and December 31, 2011, for the quarters in those years, and for the quarters ended March 29, June 28 and September 27, 2014.
Since the announcement of the BOE examination on August 6, 2014, the Company's stock has fallen from $4.10 to $2.54 per share on February 12, 2015, a decline of over 61%.
If you purchased shares of ARC during the Class Period and have suffered a loss from your investment in ARC common stock and would like to learn more about this lawsuit and your ability to potentially recover your losses, please contact us either by email at contact@tripplevy.com or by telephone at (800) 511-7037 or visit our website at www.tripplevy.com/participate-in-an-action . Please make sure you identify how many shares you own in ARC. In addition, if you wish to serve as lead plaintiff, you must move the Court no later than May 5, 2015. If you are a member of this class you can join this class action to potentially recover your losses by contacting us.
Tripp Levy PLLC is a leading national securities and shareholder rights law firm representing both individual and institutional shareholders and, along with its affiliate, have recovered billions of dollars for shareholders. Tripp Levy PLLC is affiliated with Milberg LLP. The National Law Journal has named Milberg one of the "50 Elite Trial Lawyer Firms" and one of the "50 Leading Plaintiff Firms in America."
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Tripp Levy PLLC New York, New York Toll free: 800-511-7037 International: 602-241-2841 Email: www.tripplevy.com
