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 Aero may have issued materially misleading business information to the investing public.
On February 8, 2019, CPI Aero 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 Aero, 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.
Then, on February 14, 2020, CPI Aero 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. CPI Aero further announced the resignation of its Chief Financial Officer.
On this news, the Company’s stock price fell $1.80, or over 26%, 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 Aero investors. If you purchased shares of CPI Aero 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 firstname.lastname@example.org or email@example.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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Laurence Rosen, Esq.
Phillip Kim, Esq.
The Rosen Law Firm, P.A.
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