Izard Nobel LLP Announces Class Action Lawsuit Against CPI Corp.
January 16 2012 - 12:17PM
Marketwired
The law firm of Izard Nobel LLP, which has significant experience
representing investors in prosecuting claims of securities fraud,
announces that a lawsuit seeking class action status has been filed
in the United States District Court for the Eastern District of
Missouri on behalf of purchasers of the common stock of CPI Corp.
("CPI" or the "Company") (NYSE: CPY) between April 20, 2010 and
December 21, 2011, inclusive (the "Class Period").
The Complaint alleges that CPI and certain of its officers and
directors violated the federal securities laws. Specifically,
defendants concealed the following facts: (i) CPI's business was
performing much worse than defendants acknowledged and was
deteriorating; (ii) CPI's initiatives to grow the business were not
working as represented; (iii) 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 (iv) 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 had to obtain an amendment
to its credit agreement. As a result, CPI will have to stop its
dividend. On this news, CPI stock fell nearly 63%.
If you are a member of the class, you may, no later than March
13, 2012, request that the Court appoint you as lead plaintiff of
the class. A lead plaintiff is a class member that acts on behalf
of other class members in directing the litigation. Although your
ability to share in any recovery is not affected by the decision
whether or not to seek appointment as a lead plaintiff, lead
plaintiffs make important decisions which could affect the overall
recovery for class members.
While Izard Nobel LLP has not filed a lawsuit against the
defendants, to view a copy of the Complaint initiating the class
action or for more information about the case, and your rights,
visit: www.izardnobel.com/cpicorp/, or contact Izard Nobel LLP
toll-free: (800)797-5499, or by e-mail: firm@izardnobel.com. For
more information about class action cases in general, please visit
our website: www.izardnobel.com.
CONTACT: Nancy A. Kulesa (800)797-5499 www.izardnobel.com Email
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