IEC Electronics Corp. Sued by Investor
SAN DIEGO and NEWARK, N.Y., July 9, 2013
SAN DIEGO and NEWARK, N.Y., July 9, 2013 /PRNewswire/ --Shareholder rights
attorneys at Robbins Arroyo LLP announce that a shareholder of IEC Electronics
Corp. (NYSE: IEC) has filed a complaint in the U.S. District Court for the
Southern District of New York. The complaint alleges that the company and
certain of its officers and directors violated the Securities Exchange Act of
1934 between February 8, 2012 and May 21, 2013 (the "Class Period").
IEC Accused of Making False and Misleading Statements
According to the complaint, IEC made false and/or misleading statements, as
well as failed to disclose material adverse facts about the company's
business, operations, and financial performance throughout the Class Period.
Specifically, the complaint alleges that IEC made false and/or misleading
statements and failed to disclose that the company was improperly accounting
for work-in-process inventory for one of its subsidiaries, and, as a result,
the company overstated its gross profit. The complaint further alleges that
IEC's financial results were not prepared in accordance with Generally
Accepted Accounting Principles.
IEC Stock Price Drops on News of Financial Restatements and NYSE Delisting
According to the complaint, on May 1, 2013, IEC announced that it would be
forced to restate its consolidated financial statements for its fiscal year
ended September 30, 2012, the quarterly periods during fiscal year 2012, and
its quarter ended December 28, 2012. Subsequently, on May 13, 2013, the
company also announced that it would be unable to timely file its quarterly
report on Form 10-Q with the U.S. Securities and Exchange Commission for its
fiscal quarter ended March 29, 2013. Then, on May 20, 2013, IEC announced
that, during its review of the restatement, the Board of Directors' Audit
Committee determined that further review is necessary before the company's
financial statements can be filed. Finally, on May 21, 2013, IEC announced
that it received a notice of delisting of its securities from the NYSE as a
result of failure to timely file the aforementioned quarterly report. As this
news reached the public during the month of May, IEC's stock price declined a
total of $2.18, or 38%, to close on May 21, 2013, at $3.52 per share.
If you invested in IEC and would like to discuss your shareholder rights,
please contact attorney Darnell R. Donahue at (800) 350-6003,
firstname.lastname@example.org, or via the shareholder information form on the
Robbins Arroyo 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.robbinsarroyo.com.
Press release link:
Attorney Advertising.Past results do not guarantee a similar outcome.
Darnell R. Donahue
Robbins Arroyo LLP
(619) 525-3990 or Toll Free at (800) 350-6003
SOURCE Robbins Arroyo LLP
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