Robbins LLP: TCP International Holdings Ltd. (TCPI) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that investors of TCP International Holdings Ltd. (NYSE: TCPI) have filed at least two separate federal securities fraud class action complaints in the U.S. District Court for the Northern District of Ohio. The complaints allege that the company and certain of its officers and directors violated the Securities Exchange Act of 1933 in connection with TCP’s June 26, 2014 initial public offering and through February 27, 2015. TCP, together with its subsidiaries, designs, develops, manufactures, and markets lighting products and accessories to the commercial, industrial, and retail markets.
TCP Misrepresents Its Business Practices
Shares of TCP fell $3.67 per share, or over 57%, to close at $2.74 per share on February 27, 2015. According to the complaints, the decline is attributable to the company’s disclosure that Laura Hauser, TCP’s General Counsel, Secretary, and Chief Compliance Officer had filed a lawsuit against the company and that the Company was labeling the lighting fixtures it manufactures as UL and Energy Star approved when no such approval had been received. Ms. Hauser’s lawsuit, in turn, alleges that TCP’s audit committee found that Ellis Yan, the company’s Chief Executive Officer and Chairman of the Board, had engaged in misconduct including, but not limited to: (i) overriding company policies on matters such as capital expenditure; (ii) limiting visibility of financial information and accountability to the global Chief Financial Officer; and (iii) not following proper processes for commercial price changes and obsolescence exposure.
TCP 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.