Robbins LLP Is Investigating the Officers and Directors of Checkpoint Systems, Inc. (CKP) on Behalf of Shareholders
Robbins LLP is investigating whether certain officers and directors of Checkpoint Systems, Inc. (NYSE: CKP) violated federal securities laws by issuing materially misleading business information to the investing public. Checkpoint manufactures and provides technology-driven, loss prevention, inventory management, and labeling solutions to the retail and apparel industries worldwide.
Checkpoint Discloses Errors in Its Financial Statements
On November 4, 2015, Checkpoint announced in an amended quarterly filing with the U.S. Securities and Exchange Commission that it would restate previously-issued financial statements after discovering financial statement errors attributable to the accounting for its quarterly income tax for the first two quarters of 2015. The company reported the following financial restatements for the quarter ended March 29, 2015: an increase in tax expense of $1.8 million, an increase in net loss of $1.8 million, and a decrease in diluted earnings per share of $0.04. For the quarter ended June 28, 2015, the company reported: an increase in tax expense of $4.1 million, an increase in net loss of $4.1 million, and a decrease in diluted earnings per share of $0.09. For the year-to-date ended June 28, 2015, the company reported: an increase in tax expense of $5.9 million, an increase in net loss of $5.9 million, and a decrease in diluted earnings per share of $0.14.
The company also disclosed that it did not “maintain effective controls over the period end financial reporting process” for the first two quarters in 2015. On this news, shares of Checkpoint fell over 30% in early morning trading on November 4, 2015, and traded as low as $5.07 in intraday trading.
Checkpoint 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.