Electronics For Imaging, Inc (NASDAQ:EFII) Investor Securities Class Action Lawsuit 08/10/2017

If you purchased a significant amount of shares of Electronics For Imaging, Inc (NASDAQ:EFII) between February 22, 2017 and August 3, 2017, and / or if you purchased any:EFII shares prior to February 2017 and continue to hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: October 10, 2017. NASDAQ:EFII 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): 
Electronics For Imaging
Case Name: 
Electronics For Imaging Shareholder Class Action Lawsuit 08/10/2017
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: EFII
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
08/10/2017
Class Period Begin: 
02/22/2017
Class Period End: 
08/03/2017
Court of Filing: 
U.S. District Court for the District of New Jersey
Deadline To File for Lead: 
10/10/2017
Summary: 

August 10, 2017 (Shareholders Foundation) - An investor in shares of Electronics For Imaging, Inc (NASDAQ:EFII) filed a lawsuit in the U.S. District Court for the District of New Jersey over alleged violations of Federal Securities Laws by Electronics For Imaging, Inc in connection with certain allegedly false and misleading statements made between February 22, 2017 and August 3, 2017.

According to the complaint the plaintiff alleges on behalf of purchasers of Electronics For Imaging, Inc (NASDAQ:EFII) common shares between February 22, 2017 and August 3, 2017, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between February 22, 2017 and August 3, 2017, the defendants made false and/or misleading statements and/or failed to disclose that: (1) Electronics For Imaging was improperly recognizing revenue; (2) Electronics For Imaging’s disclosure controls and procedures were not effective; (3) Electronics For Imaging’s internal control over financial reporting were not effective; and (4) as a result, Electronics For Imaging’s public statements were materially false and misleading at all relevant times.
Electronics For Imaging, Inc. reported that its annual Total Revenue rose from $882.51 million in 2015 to $992.07 million in 2106 and that its Net Income increased from $33.54 million in 2015 to $45.55 million in 2016.

On October 13, 2016, a report was published on Electronics For Imaging, Inc, alleging, among other things, that the Company has used "every accounting gimmick in the book" to tweak its earnings numbers; that "[p]ersistent material exclusions of intangible amortization expenses, stock-based compensation, restructuring/other and acquisition-related costs obfuscate Electronics For Imaging, Inc's sustainable earnings"; that the Company's balance sheet is "littered" with accounting irregularities; that management intentionally misclassified long-term receivables as "other assets" and excluded them from its days sales outstanding calculation; and that Electronics For Imaging, Inc's current projections and price targets are out of line with reality due to the Company's accounting practices.

On August 3, 2017, Electronics For Imaging, Inc notified investors that it was postponing a conference call at which it anticipated discussing second quarter 2017 preliminary results. Electronics For Imaging, Inc was delaying the call to enable the Company to complete an assessment of the timing of recognition of revenue. Additionally, Electronics For Imaging, Inc stated that it was completing an assessment of the effectiveness of current and historical disclosure controls and internal control over financial reporting. Electronics For Imaging, Inc stated that it expects to report a material weakness in internal control over financial reporting related to this matter. The Company also expects to report that disclosure controls were not effective in prior periods.

Shares of Electronics For Imaging, Inc (NASDAQ:EFII) dropped from $48.61 per share on August 3, 2017 to $25.54 per share on August 7, 2017.