Fenix Parts Inc (NASDAQ:FENX) Investor Securities Class Action Lawsuit 01/12/2017
January 12, 2017 (Shareholders Foundation) - An investor in shares of Fenix Parts Inc (NASDAQ:FENX) filed a lawsuit in the U.S. District Court for the District of New Jersey over alleged violations of Federal Securities Laws by Fenix Parts Inc in connection with certain allegedly false and misleading statements made between May 14, 2015 and October 12, 2016.
According to the complaint the plaintiff alleges on behalf of purchasers of Fenix Parts Inc (NASDAQ:FENX) common shares between May 14, 2015 and October 12, 2016, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between May 14, 2015 and October 12, 2016 the Defendants made false and/or misleading statements and/or failed to disclose that Fenix had an inadequate inventory valuation methodology, that Fenix Parts Inc had an inadequate methodology to calculate goodwill impairment, that Fenix Parts Inc was engaging and/or had engaged in conduct that would result in an SEC investigation, and that as a result, Defendants’ statements about Fenix’s business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
Fenix Parts Inc went public in May 2015 and its shares reached $11.51 per share in June 2015.
On August 18, 2015, Fenix Parts Inc announced that it would be unable to timely file its quarterly report for the period ended June 30, 2015, and disclosed that, “because of the extensive process necessary to compile this information for SEC reporting, we are delaying our filing until September 2.”
On September 2, 2015, Fenix Parts Inc failed to file its quarterly report, announced second quarter 2015 pro forma revenues of $27 million, and further disclosed that it expected to report a loss for the quarter.
On September 10, 2015, Fenix Parts Inc was the subject of an analyst report that criticized Fenix Parts’ alleged misleading financial statements, and Fenix Parts’ lack of adequate internal controls over accounting.
On August 16, 2016, Fenix Parts Inc filed a notification of late filing of its Form 10-Q for the second quarter of 2016 with the SEC.
On October 13, 2016, Fenix Parts Inc filed a Form with the SEC, stating that because of its failure to timely file its Form 10-Q for the second quarter of 2016, NASDAQ has issued it a notice of delisting. Fenix Parts Inc also provided an update on the delay of the filing of its Form 10-Q for the second quarter of 2016, revealing that it has received a subpoena from the SEC requiring production of documents related to Fenix Parts’ recent change of auditors, its previously announced business combinations and related goodwill impairment charge, effectiveness of internal controls over financial reporting, and internal valuation methodology.