NEW YORK, Aug. 20, 2013 /PRNewswire/ -- Pomerantz Grossman Hufford Dahlstrom & Gross LLP has filed a class action lawsuit against IEC Electronics Corp. ("IEC" or the "Company") (NYSE: IEC) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, and docketed under 13 CV 5864, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired securities of IEC between February 8, 2012 and May 21, 2013 both dates inclusive (the "Class Period"). This class action seeks to recover damages against the Company and certain of its officers and directors as a result of alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased IEC securities during the Class Period, you have until August 27, 2013 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
IEC is a provider of electronic contract manufacturing services ("EMS") to advanced technology companies. The Company specializes in the custom manufacture of high reliability, complex circuit cards and system-level assemblies, a wide array of cable and wire harness assemblies capable of withstanding extreme environments, and precision sheet metal components.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and financial performance. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company was improperly accounting for working-process inventory for one of its subsidiaries; (2) as a result, the Company's gross profit was overstated during the Class Period; (3) as such, the Company's financial results were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP"); (4) the Company lacked adequate internal and financial controls; and (5), as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times.
On May 1, 2013, the Company announced that it will restate its consolidated financial statements for the fiscal year ended September 30, 2012, the quarterly periods during its fiscal 2012, and the quarter ended December 28, 2012. According to the Company, IEC concluded that an error in accounting for work-in-process inventory at one of the Company's subsidiaries, Southern California Braiding, Inc., resulted in an aggregate understatement of cost of sales and an aggregate overstatement of gross profit during all such restated periods of approximately $2.2 million. On this news, the Company's shares declined $0.50 per share, or nearly 9%, to close on May 2, 2013, at $5.20 per share.
On May 13, 2013 IEC announced that it was unable to timely file its Quarterly Report on Form 10-Q for the fiscal quarter ended March 29, 2013. Citing an internal review of information related to the restatement effort, IEC filed a Notification of Late Filing with the SEC extending the filing deadline for the Company's second quarter 2013 financial results from May 13, 2013 to May 20, 2013.
On May 20, 2013, IEC announced that due to its continuing review of the restatement, the Audit Committee of the Company's Board of Directors "has determined further review of the facts and circumstances giving rise to the restatement is necessary before the Company's financial statements are finalized and filed." As a result, the Company would not meet the extended filing deadline and the Company's Q2-2013 10-Q was not filed on a timely basis. On this news, the Company's shares declined $0.67 per share, or nearly 14%, to close on May 20, 2013, at $4.20 per share.
On May 21, 2013, IEC announced it had received a notice of delisting of the Company's securities from the New York Stock Exchange ("NYSE MKT") as a result of the Company's failure to timely file its Quarterly Report on Form 10-Q for the quarter ended March 29, 2013 with the SEC. On this news, the Company's shares declined $0.68 per share, or more than 16%, to close on May 21, 2013, at $3.52 per share.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
Pomerantz Grossman Hufford Dahlstrom & Gross LLP
SOURCE Pomerantz Grossman Hufford Dahlstrom & Gross LLP