Electronics for Imaging, Inc. Accused of Improperly Recognizing Revenue
Purchasers of Electronics for Imaging, Inc. (EFII) have filed a securities class action complaint for alleged violations of the Securities Exchange Act of 1934 by the company’s officers and directors from February 22, 2017 through August 3, 2017. According to the complaint, Electronics for Imaging made a series of public statements representing that the company had effective internal controls over financial reporting, while at the same time improperly recognizing revenue. On August 3, 2017, Electronics for Imaging announced a delay in releasing its second quarter 2017 preliminary results due to an internal investigation as to its accounting practices. On this news, shares of Electronics for Imaging fell $21.61 per share, or over 45%, to close at $26.05 per share on August 4, 2017 and have yet to retain their value.