CPI Aerostructures, Inc. (NYSE: CVU) Investor Securities Class Action Lawsuit 02/24/2020

If you purchased a significant amount of shares of CPI Aerostructures, Inc. (NYSE: CVU) between May 15, 2018 and February 14, 2020, and / or if you purchased any NYSE: CVU shares prior to May 2018 and continue to hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: April 24, 2020. NYSE: CVU investors should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
CPI Aerostructures
Case Name: 
CPI Aerostructures Shareholder Class Action Lawsuit 02/24/2020
Case Status: 
Lawsuit Filed
Affected Securities
NYSE: CVU
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
02/24/2020
Class Period Begin: 
05/15/2018
Class Period End: 
02/14/2020
Court of Filing: 
U.S. District Court for the Eastern District of New York
Deadline To File for Lead: 
04/24/2020
Summary: 

An investor in shares of CPI Aerostructures, Inc. (NYSE: CVU) filed a lawsuit in the U.S. District Court for the Eastern District of New York over alleged violations of Federal Securities Laws by CPI Aerostructures, Inc. in connection with certain allegedly false and misleading statements made between May 15, 2018 and February 14, 2020.

Edgewood, NY based CPI Aerostructures, Inc. engages in the contract production of structural aircraft parts for fixed wing aircraft and helicopters in the commercial and defense markets. CPI Aerostructures, Inc. reported that its annual Total Revenue increased from over $81.28 million in 2017 to $83.92 million in 2018 and that its Net Income declined from $5.76 million in 2017 to $2.21 million in 2018..

On February 8, 2019, CPI Aerostructures disclosed that its financial statements for the three and nine months ended September 30, 2018 reported in its Form 10-Q could no longer be relied upon due to an “error . . . in the Company’s billing process.” According to CPI Aerostructures, the alleged error inflated its revenue and income before provision for income taxes, net income, and earnings per share for each such period.

Then, on February 14, 2020, CPI Aerostructures issued a statement entitled "CPI Aerostructures to Restate Fiscal 2018 and Year-to-Date Fiscal 2019 Financial Statements as a Result of Errors in Connection With Revenue Recognition Under ASC Topic 606," which announced that its financial statements for the fiscal year 2018 and year-to-date for 2019 could no longer be relied upon.

Shares of CPI Aerostructures, Inc. (NYSE: CVU) declined on February 27, 2020 to as low as $2.81 per share.

According to the complaint the plaintiff alleges on behalf of purchasers of CPI Aerostructures, Inc. (NYSE: CVU) common shares between May 15, 2018 and February 14, 2020, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between May 15, 2018 and February 14, 2020, the defendants made false and/or misleading statements and/or failed to disclose that CPI Aerostructures’ financial statements included in the Company’s Forms 10-Q for the first, second, and third quarters of 2018 and 2019 incorrectly applied generally accepted accounting principles and thus revenue, net income, retained earnings, and contract assets were overstated, that as a result, the financial statements included in the Form 10-Qs for 2018 and 2019 and the annual report on Form 10-K for 2018 could no longer be relied upon and required restatement, that CPI Aerostructures lacked adequate internal controls over financial reporting and effective disclosure controls and procedures as of the period during each reporting period of 2018, that CPI Aerostructures lacked effective disclosure controls and procedures during the third quarter of 2019, and that as a result, defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.