Robbins Umeda LLP Announces an Investigation of CPI Corporation
20 1월 2012 - 11:05PM
Business Wire
Shareholder rights firm Robbins Umeda LLP is investigating
possible breaches of fiduciary duty and other violations of the law
by certain officers and directors at CPI Corporation (NYSE: CPY).
Concerned shareholders who would like more information about their
rights and potential remedies can contact attorney Gregory E. Del
Gaizo at (800) 350-6003 or via the shareholder information form on
the firm's website.
Robbins Umeda LLP's investigation focuses on whether officials
at CPI breached their fiduciary duties to shareholders, maintained
inadequate controls, and wasted corporate assets to the detriment
of the company and investors. In particular, the firm is
investigating allegations that members of the board of directors
concealed from the investing public material adverse facts that the
company was performing poorly; that its recent acquisitions aimed
to grow the business were not working at levels represented by
officials; and that CPI's cash flow would continue to deteriorate
due to poor revenue growth.
On December 22, 2011, CPI announced its financial results for
the third quarter ending November 12, 2011. The company disclosed
to investors a staggering net loss of $7.25 million in revenue and
a net sales decline of 11%. These disappointing results caused CPI
to fail its leverage ratio test for its revolving credit facility
and forced the company to obtain an amendment to its credit
agreement. Accordingly, CPI will be forced to cease payment of
dividends to investors. Since these facts have emerged, CPI had
increasing become the target of costly public and legal scrutiny,
while the company's common stock lost nearly 63% of its value on
December 22, 2011, and has since further declined.
Robbins Umeda LLP highlights that CPI shareholders have the
option to file a derivative action to hold those officers and
directors accountable for damaging the company. Remedies commonly
sought in derivative actions include corporate governance reforms
designed to prevent future misconduct, removal of officers or
directors whose misconduct injured the corporation, and monetary
payments in the form of damages and disgorgement of ill-gotten
gains.
Robbins Umeda LLP is a nationally recognized leader in
securities litigation and shareholder rights law. The firm
represents individual and institutional investors in shareholder
derivative and securities class action lawsuits, and has helped its
clients realize more than $1 billion of value for themselves and
the companies in which they have invested. For more information,
please go to http://www.robbinsumeda.com.
Press release link:
http://www.robbinsumeda.com/shareholders-rights-blog/cpi-corp/
Attorney Advertising. Past results do not guarantee a similar
outcome.
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