SAN DIEGO and BATAVIA, Ohio, Aug. 25, 2015 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP is investigating whether certain officers and directors of Multi-Color Corporation (NASDAQGS: LABL) breached their fiduciary duties to shareholders. Multi-Color Corporation provides various label solutions, graphic and pre-press services, and various print methods.
View this press release on the law firm's Shareholder Rights Blog:
Multi-Color Corporation Fails to Maintain Sufficient Internal Controls
In July 2014, Multi-Color Corporation's former independent public accountant, auditing firm KPMG LLP, identified three material weaknesses in the company's internal controls over financial reporting. Among these weaknesses was the failure to: (1) maintain a sufficient complement of corporate accounting and finance personnel to design and execute an effective system of internal controls; (2) adequately restrict the company's general information technology controls to the appropriate personnel; and (3) design and operate internal controls to detect a material misstatement in Multi-Color Corporation's consolidated financial statements.
Although Multi-Color Corporation stated it implemented changes to its internal controls to remediate the control deficiencies, Grant Thornton LLP, the company's independent public accounting firm, issued an adverse audit report on internal control over financial reporting as of March 31, 2015, identifying material weaknesses in Multi-Color Corporation's internal controls, including the failure to (i) restrict access to data and applications, and (ii) design and implement a comprehensive system of controls to prevent or detect a material misstatement of the company's financial statements.
In light of this news, Robbins Arroyo LLP's investigation focuses on whether Multi-Color Corporation and/or its officers misled shareholders by failing to maintain an effective system of internal controls.
Multi-Color Corporation Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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SOURCE Robbins Arroyo LLP