SHAREHOLDER ALERT: Schubert Firm Investigating Possible Breaches of Fiduciary Duty by CPI Aerostructures, Inc. Officers and Directors
Aug 14, 2020
Legal Newswire POWERED BY LAW.COM
Schubert Jonckheer & Kolbe LLP is investigating potential shareholder derivative claims on behalf of stockholders of CPI Aerostructures, Inc. related to errors in the company's financial statements.
On February 14, 2020, CPI Aero announced that its financial statements for the past six quarters should no longer be relied upon due to an error relating to the company's recognition of revenue from contracts with its customers. The company also identified a material weakness in internal controls over financial reporting for these periods. According to CPI Aero, certain revenues and net income were recognized prematurely or inaccurately due to an incorrect application of generally accepted accounting principles, causing overstated revenue and net income. The amount of these overstated figures that will be restated has not yet been disclosed. On this news, CPI Aero's stock price fell $1.80 per share, or 27%, to close at $4.87 per share. The stock has continued to decline since. This financial restatement has exposed the company to securities litigation currently pending in the U.S. District Court for the Eastern District of New York.
The Schubert Firm is investigating potential derivative claims based on harm the company has suffered as a result of potential breaches of fiduciary duty by the company's officers and directors for engaging in accounting manipulation and making false and misleading statements to shareholders and the market. For more information, please visit our website at http://www.classactionlawyers.com/CPIAero.
About Schubert Jonckheer & Kolbe LLP
Schubert Jonckheer & Kolbe represents shareholders, employees, and consumers in class actions against corporate defendants, as well as shareholders in derivative actions against their officers and directors. The firm is based in San Francisco, and with the help of co-counsel, litigates cases nationwide.
Dustin L. Schubert
Schubert Jonckheer & Kolbe
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