NEW YORK, Jan. 23, 2012 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at CPI Corp. ("CPI" or the "Company") (NYSE: CPY).
The investigation focuses on whether CPI and its executives violated federal securities laws by failing to disclose that: (1) CPI's initiatives to grow the business were not working at the levels represented by defendants; (2) CPI's stock was, contrary to Company statements, not a "good investment"; (3) the Company's stock buy-back was intended solely to project false confidence in the Company's prospects; and (4) CPI's cash flows would continue to deteriorate due to poor revenue growth such that the Company's capital structure was not as strong as defendants represented.
CPI stock dropped to $1.98 per share on Dec. 22, after the Company reported a net loss of $7.25 million in the third quarter and a net sales decline of 11%. The stock had traded at a high of $31.21 per share as recently as May 2010.
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If you purchased CPI securities between April 20, 2010 and December 21, 2011 and would like to discuss your legal rights, visit www.faruqilaw.com/CPY. You can also contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to [email protected] or [email protected]. Faruqi & Faruqi, LLP also encourages anyone with information regarding CPI's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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FARUQI & FARUQI, LLP
369 Lexington Avenue, 10th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
Francis McConville, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
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