Ryan & Maniskas, LLP Announces Class Action Lawsuit Against CPI Corp.
January 20 2012 - 7:40PM
Business Wire
Ryan & Maniskas, LLP (www.rmclasslaw.com/cases/cpy)
announces that a class action lawsuit has been filed in United
States District Court for the Eastern District of Missouri on
behalf of investors who purchased CPI Corp. (“CPI” or the
“Company”) (NYSE: CPY) common stock between April 20, 2010 and
December 21, 2011 (the “Class Period”).
For more information regarding this class action suit, please
contact Ryan & Maniskas, LLP (Richard A. Maniskas, Esquire)
toll-free at (877) 316-3218 or by email at rmaniskas@rmclasslaw.com
or visit: www.rmclasslaw.com/cases/cpy.
The Complaint alleges that CPI and certain of its officers and
directors violated the 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 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 representative party that acts on
behalf of other class members in directing the litigation. In order
to be appointed lead plaintiff, the Court must determine that the
class member's claim is typical of the claims of other class
members, and that the class member will adequately represent the
class. Under certain circumstances, one or more class members may
together serve as "lead plaintiff." Your ability to share in any
recovery is not, however, affected by the decision whether or not
to serve as a lead plaintiff. You may retain Ryan & Maniskas,
LLP or other counsel of your choice, to serve as your counsel in
this action.
For more information about the case or to participate online,
please visit: www.rmclasslaw.com/cases/cpy or contact Richard A.
Maniskas, Esquire toll-free at (877) 316-3218, or by e-mail at
rmaniskas@rmclasslaw.com. For more information about class action
cases in general or to learn more about Ryan & Maniskas, LLP,
please visit our website: www.rmclasslaw.com.
Ryan & Maniskas, LLP is a national shareholder litigation
firm. Ryan & Maniskas, LLP is devoted to protecting the
interests of individual and institutional investors in shareholder
actions in state and federal courts nationwide.
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