SAN DIEGO and MALVERN, Pa., Oct. 7, 2015 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that a securities fraud class action complaint was filed in the U.S. District Court for the Eastern District of Pennsylvania. The complaint alleges that officers and directors of USA Technologies, Inc. (NASDAQGM: USAT) violated the Securities Exchange Act of 1934 between September 29, 2014 and September 29, 2015, by making materially false and misleading statements about USA Technologies' business policies. USA Technologies provides wireless networking, cashless transactions, asset monitoring, and other value-added services principally to the small ticket, unattended point of sale market in the United States and internationally.
View this press release on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/usa-technologies-inc
USA Technologies Fails to Disclose Financial Reporting Deficiencies
According to the complaint, USA Technologies officials failed to disclose that there were significant deficiencies in the design and operating effectiveness of the company's internal control over financial reporting. The complaint further alleges that when aggregated, these deficiencies represented a material weakness in internal control, and as a result, the company's public statements were false and misleading.
On September 29, 2015, USA Technologies announced that it was unable to timely file its annual report on Form 10-K for the fiscal year ended June 30, 2015, due to deficiencies in its internal control over its financial reporting. The company stated that the most significant weaknesses related to certain customer accounts and receivable balances involving customer processing and service fees. Specifically, the procedures in place did not identify a significant amount of small balance accounts that may be uncollectible, causing the company to increase its bad debt reserve by approximately $450,000, resulting in an after-tax charge of approximately $270,000. On this news, USA Technologies stock fell $0.28, or 10.1%, to close at $2.49 on September 30, 2015.
USA Technologies 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