Robbins LLP: Checkpoint Systems, Inc. (CKP) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that a class action complaint was filed in the U.S. District Court for the District of New Jersey. The complaint alleges that officers and directors of Checkpoint Systems, Inc. (NYSE: CKP) violated the Securities Exchange Act of 1934 between March 5, 2015 and November 3, 2015, by making materially false and misleading statements about Checkpoint Systems’ business prospects. Checkpoint Systems manufactures and provides technology-driven, loss prevention, inventory management, and labeling solutions to the retail and apparel industries worldwide.
Checkpoint Systems Accused of Issuing Misleading Financial Information
According to the complaint, in 2015, Checkpoint Systems filed several Form 10-Qs and a Form 10-K with the U.S. Securities and Exchange Commission (“SEC”), containing detailed information regarding anticipated 2015 results, income tax provisions, and other financial statements. The filings also stated that the company had adequate internal controls in place to ensure the accuracy of its financial results. The complaint alleges these filings were fraudulently disclosed to investors as an accurate reflection of the company’s financial status, when in fact, they were false.
After the market closed on November 3, 2015, Checkpoint Systems filed a Form 8-K with the SEC, admitting that it discovered financial statement errors attributable to the accounting for its quarterly income tax provision. It stated that investors should no longer rely upon the company’s previously-issued financial statements and any earnings releases or other company communications relating to those periods. The following day, the company filed restated financial reports for the affected time periods. On this news, Checkpoint Systems’ stock price plummeted, falling by $1.73 per share, or more than 22%, to close at $5.97 per share on November 4, 2015.
Checkpoint Systems Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.