SAN FRANCISCO, Oct. 25, 2016 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP alerts investors in Fenix Parts Inc. to the firm’s investigation into possible securities law violations by the Company and certain senior executives.
If you purchased or otherwise acquired securities of FENX before October 13, 2016 and suffered over $50,000 in losses, or have relevant information in the investigation, contact Hagens Berman Sobol Shapiro LLP. For more information visit:
https://www.hbsslaw.com/cases/FENX
or contact Reed Kathrein, who is leading the firm’s investigation, by calling 510-725-3000 or emailing FENX@hbsslaw.com.
Hagens Berman’s investigation into possible securities law violations by Fenix and its management currently centers on (1) the Company’s announcement it could not timely file its Form 10-Q for the second quarter of 2016; (2) its receipt of a subpoena from the SEC requesting accounting documents; and (3) its replacement of its outside auditor.
More specifically, on August 16, 2016 Fenix filed a notification of late filing for its second quarter 2016 Form 10-Q. At that time, the Company said the delay was prompted by the board’s decision to change its outside auditors. This news drove the price of Fenix shares down approximately 5.2%.
Then, on October 13, 2016, Fenix announced it received a subpoena from the SEC. The subpoena required documents relating to the Company’s change of auditors, purchase accounting for prior business combinations and goodwill impairment, inventory valuations, and the effectiveness of internal controls. This news drove the price of Fenix shares down approximately 11.6%.
“When the SEC identifies the breadth of accounting issues to investigate, as it did here, there is the potential for historical financial restatements,” said Hagens Berman partner Reed Kathrein.
Whistleblowers: Persons with non-public information regarding Fenix 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 FENX@hbsslaw.com.
About Hagens Berman
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