According to the law firm press release, UniTek provides engineering, construction management and installation fulfillment services to companies in the telecommunications, broadband cable and satellite industries. During the Class Period, UniTek made materially false and misleading statements and omissions regarding the Company’s financial condition and prospects as well as its internal controls.
On Friday, April 12, 2013, after the close of the financial markets, UniTek announced that it would need to restate its previously-issued financial results dating back to 2011. Stunningly, the Company also admitted that several employees had engaged in fraudulent activities that resulted in improper revenue recognition. UnitTek further disclosed that the Chief Financial Officer and the Chief Accounting Officers, as well as several other employees, had been immediately terminated from their positions with the Company.
In reaction to these shocking revelations, UniTek’s stock price plummeted 50% from a closing price of $3.01 per share on Friday April 12, 2013 to $1.52 per share on Monday April 15, 2013, wiping out half of the Company’s market capitalization in a single day.
The parties filed a Stipulation of Settlement on January 17, 2014. This Settlement was preliminarily approved on February 21. On June 27, 2014, the Settlement was granted final approval and this case was dismissed.