Cases
CPI Card Group, Inc. (NASDAQ: PMTS)
Securities Class Action
Overview
Overview
- Date:
- 6/16/2016
- Company Name:
- CPI Card Group, Inc.
- Stock Symbol:
- PMTS
- Class Period:
- FROM 10/5/2015 TO 6/15/2016
- Status:
- Closed/Complete
- Court:
- U.S. District Court: Southern District of New York
NEW YORK, June 16, 2016 – Bragar Eagel & Squire, P.C. announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities who acquired CPI Card Group, Inc. (NASDAQ: PMTS) securities in connection with CPI's October 8, 2015 initial public offering ("IPO"), including purchasers of the common stock in the aftermarket.
CPI is a leading provider of payment card production and related services, offering a single source for credit, debit and prepaid debit cards, including "EMV" (Europay, MasterCard and Visa) chip, personalization, instant issuance, fulfillment and mobile payment services. CPI markets its products and services to national and regional banks, independent community banks, credit unions, managers of prepaid programs, group service providers, and card processors through field-based sales representatives in North America, Western Europe, the United Kingdom and Canada.
The complaint alleges that at the time of the IPO, unbeknownst to investors, the company had shipped upwards of 100 million more cards to its larger issuer customers than they were using in the second quarter and first part of the third quarter of 2015, resulting in the buildup of a massive backlog with those customers, which was significantly reducing the demand for additional card shipments in the fourth quarter of 2015 and fiscal 2016. The adverse events and uncertainties associated with CPI's largest customers' inventory levels was reasonably likely to have a material impact on CPI's profitability and, therefore, was required to be disclosed in the Registration Statement, but was not.
The IPO was successful. CPI issued 17.25 million shares of common stock at $10 per share and raised $172.5 million in gross proceeds.
On May 11, 2016, CPI reported disappointing financial results for the first quarter ended March 31, 2016, stating "primary impact resulting from lower than expected EMV card shipments," according to President and CEO Steve Montross.
On the news, CPI stock plummeted 48%, to close at $4.01 on May 12, 2016.
If you acquired CPI securities in connection with the company's IPO, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters please contact Melissa A. Fortunato, Esq. by email at investigations@bespc.com, or telephone at (212) 355-4648, or by filling out the contact form below. There is no cost or obligation to you.
CPI is a leading provider of payment card production and related services, offering a single source for credit, debit and prepaid debit cards, including "EMV" (Europay, MasterCard and Visa) chip, personalization, instant issuance, fulfillment and mobile payment services. CPI markets its products and services to national and regional banks, independent community banks, credit unions, managers of prepaid programs, group service providers, and card processors through field-based sales representatives in North America, Western Europe, the United Kingdom and Canada.
The complaint alleges that at the time of the IPO, unbeknownst to investors, the company had shipped upwards of 100 million more cards to its larger issuer customers than they were using in the second quarter and first part of the third quarter of 2015, resulting in the buildup of a massive backlog with those customers, which was significantly reducing the demand for additional card shipments in the fourth quarter of 2015 and fiscal 2016. The adverse events and uncertainties associated with CPI's largest customers' inventory levels was reasonably likely to have a material impact on CPI's profitability and, therefore, was required to be disclosed in the Registration Statement, but was not.
The IPO was successful. CPI issued 17.25 million shares of common stock at $10 per share and raised $172.5 million in gross proceeds.
On May 11, 2016, CPI reported disappointing financial results for the first quarter ended March 31, 2016, stating "primary impact resulting from lower than expected EMV card shipments," according to President and CEO Steve Montross.
On the news, CPI stock plummeted 48%, to close at $4.01 on May 12, 2016.
If you acquired CPI securities in connection with the company's IPO, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters please contact Melissa A. Fortunato, Esq. by email at investigations@bespc.com, or telephone at (212) 355-4648, or by filling out the contact form below. There is no cost or obligation to you.