BOSTON, Aug. 18, 2014 /PRNewswire/ -- Shares of Fabrinet ("Fabrinet" or the "Company") (NYSE: FN) have plunged precipitously on news that the Company has initiated an investigation of its internal and accounting controls. The Company stated that it uncovered issues with its accounting during the fourth quarter of its fiscal year, which ended on June 27, 2014. In addition to the accounting irregularities, the Company is investigating potential deficiencies regarding its disclosure controls and the procedures and internal controls related to its financial reporting. The United States Securities and Exchange Commission has been alerted to the potential fraud at the Company.
Fabrinet first reported the internal issues on the morning of August 18, 2014. Upon absorbing the news, the trading price of the Company's stock price dropped over 22%, falling from a closing price on Friday, August 15, 2014, of $17.75 to as low as $13.75 during trading on August 18, 2014. As a result of its accounting problems, the Company postponed its fourth quarter and fiscal year 2014 financial results, and canceled its quarterly conference call.
Block & Leviton LLP is investigating the Company and certain of its officers and directors to determine how widespread any potential accounting violations extend and whether any insiders at the Company personally profited by the alleged accounting improprieties. The investigation also includes an analysis of how the rights of purchasers of Fabrinet's recent secondary offering of 3.15 million shares, priced at $18.70 and conducted in May and June of 2014, may be affected by the accounting issues and resulting drop in shareholder value.
If you purchased Fabrinet securities and have questions about your legal rights, or if you have information relevant to this investigation, please contact attorney Steven P. Harte of Block & Leviton LLP at (617) 398-5600 or at Steven@blockesq.com. Confidentiality to any whistleblowers or other persons with information relevant to the investigation is assured.
Block & Leviton is a Boston-based law firm representing investors for violations of securities laws. The firm's lawyers have collectively been prosecuting securities cases on behalf of investors for over 70 years.
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BLOCK & LEVITON LLP
Steven P. Harte
SOURCE Block & Leviton LLP