Case Page

 

Case Status:    ONGOING    
On or around 03/29/2017 (Ongoing date of last review)

Filing Date: June 15, 2016

According to the law firm press release, CPI is a leading provider of payment card production and related services, offering a single source for credit, debit and prepaid debit cards, including “EMV” (Europay, MasterCard and Visa) chip, personalization, instant issuance, fulfillment and mobile payment services. CPI markets its products and services to national and regional banks, independent community banks, credit unions, managers of prepaid programs, group service providers, and card processors through field-based sales representatives in North America, Western Europe, the United Kingdom and Canada.

The complaint alleges that at the time of the IPO, unbeknownst to investors, the Company had shipped upwards of 100 million more cards to its larger issuer customers than they were using in the second quarter and first part of the third quarter of 2015, resulting in the buildup of a massive backlog with those customers, which was significantly reducing the demand for additional card shipments in the fourth quarter of 2015 and fiscal 2016. The adverse events and uncertainties associated with CPI’s largest customers’ inventory levels was reasonably likely to have a material impact on CPI’s profitability and, therefore, was required to be disclosed in the Registration Statement, but was not.

The IPO was successful for the Company, the selling stockholders and the underwriters who sold 17.25 million shares of CPI common stock at $10 per share, raising $172.5 million in gross proceeds. At the time of the filing of the complaint, CPI common stock was trading at $4.70 per share – 53% less than the IPO price.

On August 30, 2016, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed a consolidated complaint on October 17.

COMPANY INFORMATION:

Sector: Financial
Industry: Consumer Financial Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: PMTS
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: S.D. New York
DOCKET #: 16-CV-04531
JUDGE: Hon. Lewis A. Kaplan
DATE FILED: 06/15/2016
CLASS PERIOD START: 10/08/2015
CLASS PERIOD END: 06/15/2016
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Johnson & Weaver LLP
    99 Madison Avenue, 5th Floor, Johnson & Weaver LLP, NY 10016
    212.802.1486 212.602.1592 ·
  2. Robbins Geller Rudman & Dowd LLP (Melville)
    58 South Service Road, Suite 200, Robbins Geller Rudman & Dowd LLP (Melville), NY 11747
    631.367.7100 631.367.1173 ·
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 16-CV-04531
JUDGE: Hon. Lewis A. Kaplan
DATE FILED: 10/17/2016
CLASS PERIOD START: 10/08/2015
CLASS PERIOD END: 06/15/2016
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Labaton Sucharow LLP
    140 Broadway, Labaton Sucharow LLP, NY 10005
    212.907.0700 212.818.0477 · info@labaton.com
No Document Title Filing Date