NEW YORK, Feb. 22, 2020 (GLOBE NEWSWIRE) -- Rosen Law Firm, a global investor rights law firm, continues to investigate potential securities claims on behalf of shareholders of CPI Aerostructures, Inc. (NYSE: CVU) resulting from allegations that CPI Aerostructures may have issued materially misleading business information to the investing public.
On February 8, 2019, CPI Aerostructures disclosed that its financial statements for the three and nine months ended September 30, 2018 reported in its Form 10-Q could no longer be relied upon due to an “error . . . in the Company’s billing process.” According to CPI Aerostructures, the alleged error inflated the Company’s revenue and income before provision for income taxes, net income, and earnings per share for each such period. On this news, the Company’s stock price fell $0.59 per share, or over 8.5%, to close at $6.34 per share on February 8, 2019, injuring investors.
Then, on February 14, 2020, CPI Aerostructures announced that its financial statements for fiscal year 2018, the last three quarters of 2018, and the first two quarters of 2019 should no longer be relied upon due to errors in those financial statements relating to the Company’s recognition of revenue from contracts with customers under ASC Topic 606.
The Company also announced that investors should no longer rely upon the independent auditor’s reports on the effectiveness of internal control over financial reporting for the year ended December 31, 2018, 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 those periods.
On this news, the Company’s stock price fell $1.80 per share, or approximately 27%, to close at $4.87 per share on February 14, 2020, injuring investors.
Rosen Law Firm is preparing a class action lawsuit to recover losses suffered by CPI Aerostructures investors. If you purchased shares of CPI Aerostructures please visit the firm’s website at http://www.rosenlegal.com/cases-register-1506.html to join the class action. You may also contact Phillip Kim of Rosen Law Firm toll free at 866-767-3653 or via email at pkim@rosenlegal.com or cases@rosenlegal.com .
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Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 3 each year since 2013. Rosen Law Firm has secured hundreds of millions of dollars for investors.
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Contact Information: Laurence Rosen, Esq. Phillip Kim, Esq. The Rosen Law Firm, P.A. 275 Madison Avenue, 40 th Floor New York, NY 10016 Tel: (212) 686-1060 Toll Free: (866) 767-3653 Fax: (212) 202-3827 lrosen@rosenlegal.com pkim@rosenlegal.com cases@rosenlegal.com www.rosenlegal.com
