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You must submit the settlement Proof form attached below, in order to participate in this settlement. There is a strict deadline of January 30, 2019 by which all claims must be submitted. The instructions for submitting are included in the Proof and the Notice files attached below for your download. DO NOT SEND THE FORMS TO THE SHAREHOLDERS FOUNDATION, INC.
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To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Lawsuit Overview
Settlement Overview
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February 25, 2019 - The court granted final approval of the settlement.
October 22, 2018 - The court preliminarily approved the settlement.
September 21, 2018 - A stipulation of settlement was filed by the parties.
October 27, 2017 - The court denied defendants' motion to dismiss.
November 16, 2016 - A motion to dismiss the consolidated complaint was filed.
October 17, 2016 - A consolidated complaint was filed.
June 15, 2016 - An investor in shares of CPI Card Group Inc (NASDAQ: PMTS) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by CPI Card Group Inc in connection with certain allegedly false and misleading statements made in connection with CPI's October 8, 2015 initial public offering.
According to the complaint the plaintiff alleges that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that CPI Card Group Inc, certain of its officers and directors, the underwriters of CPI's IPO and certain selling shareholders violated the Securities Act of 1933. CPI Card Group Inc conducted its initial public offering (“IPO”) on October 8, 2015. The IPO was successful for CPI Card Group Inc, the selling stockholders and the underwriters who sold 17.25 million shares of CPI Card Group Inc common stock at $10 per share, raising $172.5 million in gross proceeds.
The plaintiff alleges that alleges that at the time of the IPO, unbeknownst to investors, CPI Card Group Inc had shipped upwards of 100 million more cards to its larger issuer customers than they were using in the second quarter and first part of the third quarter of 2015, resulting in the buildup of a massive backlog with those customers, which was significantly reducing the demand for additional card shipments in the fourth quarter of 2015 and fiscal 2016. The plaintiff says that the adverse events and uncertainties associated with CPI Card Group's largest customers' inventory levels was reasonably likely to have a material impact on CPI Card Groups profitability and, therefore, was required to be disclosed in the Registration Statement, but was not. CPI Card Group Inc reported that its annual total Revenue rose from $261.01 million in 2014 to $374.11 million in 2015 and that its Net Income increased from $13.30 million in 2014 to $30.86 million in 2015.
On May 11, 2016, CPI Card Group Inc reported its first quarter 2016 results and revised its fully year 2016 financial outlook.
Shares of CPI Card Group Inc (NASDAQ: PMTS) declined from $7.85 per share on May 11, 2016 to $3.54 per share on May 19, 2016.