NEW YORK, June 16, 2016 /PRNewswire/ -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against CPI Card Group, Inc. ("CPI" or the "Company") (NASDAQ: PMTS) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired CPI common stock in connection with CPI's October 8, 2015 initial public offering ("IPO"), including purchasers of the common stock in the aftermarket.
CPI is a prominent provider of electronic payment cards and associated 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.
The complaint alleges that at the time of the IPO, CPI had shipped over 100 million cards more than shipped in the second quarter and first part of the third quarter of 2015. Unbeknownst to investors at the time, this shipment created a massive backlog with those customers, which significantly reduced the demand for additional card shipments in the fourth quarter of 2015 and fiscal 2016. The unfavorable dealings and uncertainties linked with CPI's largest customers' inventory levels were likely to impact on CPI's profitability and, therefore, should have been disclosed in the Registration Statement.
CPI sold 17.25 million shares of common stock during its IPO at $10 per share, raising $172.5 million. At the time the complaint was filed, CPI common stock was trading at about $4.70 per share – 53% less than the IPO price.
No Class has yet been certified in the above action. If you wish to review a copy of the Complaint you can visit the firm's site: http://www.bgandg.com/#!cpi/edd1e or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email email@example.com. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. If you suffered a loss in CPI and purchased the common stock in or pursuant to CPI's October 8, 2015 IPO, including purchasers of the common stock in the aftermarket (the "Class") you can request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | firstname.lastname@example.org
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SOURCE Bronstein, Gewirtz & Grossman, LLC