BOSTON, Jan. 22, 2016 /PRNewswire/ -- A class action has been filed against Cnova NV ("Cnova" or the "Company") (NASDAQ: CNV) and certain of its officers, directors, and underwriters of Cnova's IPO for violations of the federal securities laws. The case is pending in the United States District Court for the Southern District of New York on behalf of all investors who purchased or otherwise acquired Cnova securities (the "Class") between November 19, 2014 and December 18, 2015 (the "Class Period").
On December 18, Cnova disclosed that it had "engaged legal advisors and external forensic accountants to perform a review of issues in connection with employee misconduct related to inventory management," and that "[t]he investigation will also assess any accounting and financial statement impact of the conduct under review." On December 19, Cnova's stock price fell 18% to close at $2.45 resulting in a loss of more than a $200 million in the Company's market capitalization, and down nearly 70% below the Company's IPO price of $7.00 per share.
The lawsuit alleges that defendants failed to disclose that Cnova: (1) overstated net sales; (2) failed to properly write-off the value of certain returned items; (3) misstated accounts receivable related to the damaged/returned items; (4) overstated EBIT; (5) lacked adequate internal controls; and (6) issued misleading financial statements.
If you purchased Cnova securities during the Class Period, you have until March 21, 2016 to file a motion to serve as lead plaintiff. As a member of the class, you may seek to serve as a lead plaintiff or take no action and remain an absent class member. If have questions about becoming a lead plaintiff or possess information relevant to this case, please contact either attorney Steven Harte at (617) 398-5600 or Steven@blockesq.com or attorney Brad Vettraino at (617) 398-5600 or Bradley@blockesq.com. Confidentiality to whistleblowers or others with relevant information is assured.
Block & Leviton represents investors affected by violations of securities laws as well as whistleblowing employees. The firm's lawyers have collectively been prosecuting securities cases for over 70 years, have recovered billions of dollars for investors and represent some of the nation's largest institutional investors.
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