Ryan & Maniskas, LLP Announces Class Action Lawsuit Against CPI Corp.
Published on Friday, 20 January 2012 19:43 Written by TradersHuddle StaffWAYNE, Pa.-( Business Wire )-
Ryan & Maniskas, LLP (www.rmclasslaw.com/cases/cpy) announces that a class action lawsuit has been filed in United States District Court for the Eastern District of Missouri on behalf of investors who purchased CPI Corp. (“CPI” or the “Company”) (NYSE: CPY) common stock between April 20, 2010 and December 21, 2011 (the “Class Period”).
The Complaint alleges that CPI and certain of its officers and directors violated the federal securities laws. Specifically, defendants concealed the following facts: (1) CPI's business was performing much worse than defendants acknowledged and was deteriorating; (2) CPI's initiatives to grow the business were not working as represented; (3) CPI's stock was not a "good investment" and the Company's stock buy-back was intended solely to project false confidence in the Company's prospects; and (4) CPI's cash flows would continue to deteriorate due to poor revenue growth.
On December 22, 2011, CPI announced results for the fiscal quarter ended November 12, 2011. CPI reported a net loss of ($7.25) million and that net sales declined 11% to $95.0 million, due in significant part to the Company's comparable store sales declines. The results also meant that CPI had failed its leverage ratio test for its revolving credit facility. CPI had to obtain an amendment to its credit agreement. As a result, CPI will have to stop its dividend. On this news, CPI stock fell nearly 63%.
If you are a member of the class, you may, no later than March 13, 2012, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Ryan & Maniskas, LLP or other counsel of your choice, to serve as your counsel in this action.
Ryan & Maniskas, LLP is a national shareholder litigation firm. Ryan & Maniskas, LLP is devoted to protecting the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide.