BOSTON, Nov. 4, 2015 /PRNewswire/ -- Checkpoint Systems Inc. ("Checkpoint" or the "Company") (NYSE: CKP) announced this morning in amended quarterly filing with the SEC, that it would restate previously-issued financial statements after discovering financial statement errors attributable to the accounting for its quarterly income tax for the first two quarters of 2015. The Company reported the following financial restatements, among others:
- Quarter ended March 29, 2015: increase in tax expense of $1.8 million, increase in net loss of $1.8 million, and decrease in diluted earnings per share of $0.04;
- Quarter ended June 28, 2015: increase in tax expense of $4.1 million, increase in net loss of $4.1 million, and decrease in diluted earnings per share of $0.10; and
- Year-to-date ended June 28, 2015: increase in tax expense of $5.9 million, increase in net loss of $5.9 million, and decrease in diluted earnings per share of $0.14
The Company also disclosed that it did not "maintain effective controls over the period end financial reporting process" for the first two quarters in 2015.
On this news, shares of Checkpoint have fallen nearly 25% in early morning trading, representing a loss of market capitalization of approximately $70 million. Block & Leviton LLP (www.blockesq.com), a securities litigation firm representing investors nationwide, is investigating whether Checkpoint and its officers and directors may have violated federal securities laws.
If you purchased or otherwise acquired Checkpoint securities on or before November 3, 2015, and have questions about your legal rights or possess information relevant to this investigation, please contact either attorney Steven Harte at (617) 398-5600 or email him at Steven@blockesq.com or attorney Brad Vettraino at (617) 398-5600 or by email at Bradley@blockesq.com. Confidentiality to whistleblowers or others with relevant information is assured.
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