SAN FRANCISCO, Aug. 05, 2016 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP reminds CPI Card Group Inc. (NASDAQ:PMTS) investors of the August 15, 2016 Lead Plaintiff deadline in the securities class action lawsuit filed in the United States District Court for the Southern District of New York.
If you purchased or otherwise acquired shares of CPI Card Group Inc. pursuant to the October 8, 2015 initial public offering (“IPO”), including purchases of shares in the aftermarket, and suffered over $75,000 in losses contact Hagens Berman Sobol Shapiro LLP. For more information visit:
https://www.hbsslaw.com/cases/PMTS
or contact Reed Kathrein, who is leading the firm’s investigation by calling 510-725-3000 or emailing PMTS@hbsslaw.com.
CPI produces payment cards it sells to credit and debit card issuers. Among these cards are “EMV” or “chip” cards which store data on integrated circuits instead of on less secure magnetic stripes.
The litigation concerns Defendants’ statements in the October 2015 IPO offering materials about CPI’s growth due to its customers’ conversions from magnetic stripe cards to EMV cards without also disclosing that CPI’s largest customers had massive backlogs of unissued EMV inventory.
On May 11, 2016, CPI reported disappointing first quarter 2016 results and significantly reduced its 2016 financial outlook. Its President and Chief Executive Officer (Steve Montross) stated “[t]he carryover of unissued EMV card inventories into 2016 by the large issuers and processors which is now estimated to event an additional 50 to 100 million units or about 8% to 16% of total EMV card production demand in 2016 has left many large issuers and processors with at least three months’ supply of excess inventory and in some cases more.” The price of CPI shares fell over 47%, from $7.66 to close at $4.01 on May 12, 2016.
“CPI’s executives appear to have falsely recognized revenue in an attempt to conceal the Company’s true earnings numbers – this should raise a red flag for CPI investors,” said Hagens Berman partner Reed Kathrein.
Whistleblowers: Persons with non-public information regarding CPI Card Group Inc. should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email PMTS@hbsslaw.com
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