The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of CPI Aerostructures, Inc. ("CPI" or "the Company") (NYSE: CVU) for violations of the securities laws.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. CPI announced on February 14, 2020, 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. The Company admitted that it had discovered an "error . . . in the Company’s billing process." The Company confessed that the "error" inflated revenues and income before provision for income tax, net income, and earnings per share for each period. The Company also disclosed that investors could not 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. CPI also announced the resignation of its CFO. Based on this news, shares of CPI fell by more than 26% on the same day.
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The class in this case has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
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