The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of those who acquired CPI Aerostructures (“CPI” or the “Company”) (NYSE: CVU) securities during the period from May 15, 2018 through February 14, 2020. Investors have until April 24, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that the Company failed to disclose that: (i) CPI Aerostructures’ financial statements included in the Company’s Forms 10-Q for the first, second, and third quarters of 2018 and 2019 incorrectly applied generally accepted accounting principles and thus revenue, net income, retained earnings, and contract assets were overstated; (ii) as a result, the financial statements included in the Form 10-Qs for 2018 and 2019 and the annual report on Form 10-K for 2018 could no longer be relied upon and required restatement; (iii) CPI Aerostructures lacked adequate internal controls over financial reporting and effective disclosure controls and procedures as of the period during each reporting period of 2018; and (iv) CPI Aerostructures lacked effective disclosure controls and procedures during the third quarter of 2019.
On February 14, 2020, CPI announced that its financial statements for the fiscal year 2018 and year to date 2019 could no longer be relied upon because “previously reported revenue and net income are believed to have been overstated.” The Company revealed that it had “determined that a material weakness existed in the Company’s internal control over financial reporting.” On this news, the price of SPI stock fell $1.80, or nearly 27%, to close at $4.87 per share on February 14, 2020.
If you acquired CPI securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.