NEW YORK, March 21, 2017 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential misconduct at Fenix Parts, Inc. ("Fenix" or the "Company") (NasdaqGM: FENX).
The investigation focuses on whether the Company's Board of Directors and/or its officers committed mismanagement and breached their fiduciary duties. On October 13, 2016, Fenix issued a press release stating that the Company "has delayed filing its Quarterly Report on Form 10-Q for the second quarter of 2016 to complete quarterly review and first-time-through procedures, which are still ongoing." The Company further stated that the delay was caused, in large part, by "the receipt of a subpoena from the Chicago Regional Office of the SEC requiring the production of various documents. The SEC inquiry appears to be focused on the Company's recent change in its independent registered public accounting firm, its previously announced business combinations and related goodwill impairment charge, the effectiveness of its internal control over financial reporting and its inventory valuation methodology."
In addition, the Company's stock is subject to suspension and delisting from the Nasdaq as a result of Fenix's failure to comply with Nasdaq Listing Rule 5250(c)(1) ("the Rule"). In a press release issued on February 21, 2017, Fenix stated that the Company "intends to timely request a hearing before the [Nasdaq Hearings] Panel, at which the Company will present its plan to achieve compliance with the Rule."
As a result of the foregoing, Fenix is currently facing a securities class action lawsuit.
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If you currently own Fenix stock and would like to discuss your legal rights, please visit www.faruqilaw.com/FENX. You can also contact us by calling Stuart Guber toll free at (215) 277-5770 or by sending an e-mail to firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding Fenix's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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SOURCE Faruqi & Faruqi, LLP