Settled: February 6, 2019
On February 6, 2019, the Court granted approval of the Settlement in this Action, which provides for a $11 million Settlement for the benefit of eligible Settlement Class Members.
Lead Plaintiff alleges that the registration statement and prospectus used to conduct the Company’s October 9, 2015 IPO were false and misleading for misrepresenting the true state of demand for EMV cards and failing to disclose adverse trends and uncertainties, as well as significant risks, concerning the Company and its EMV card sales at the time of the IPO. Lead Plaintiff alleges that, as the market learned the truth about the Company’s EMV card sales and the demand for those cards, CPI’s stock price fell.
On October 17, 2016, Lead Plaintiff filed the Consolidated Class Action Complaint for Violation of Federal Securities Laws (the “Complaint”), asserting claims under Sections 11 and 15 of the Securities Act. On November 16, 2016, CPI, the Individual Defendants, and the Tricor Defendants (the “Issuer Defendants”) filed a motion to dismiss the Complaint, and the Underwriter Defendants filed a joinder. Lead Plaintiff opposed the motion on December 16, 2016. On January 10, 2017, the Issuer Defendants filed a reply brief in further support of the motion to dismiss, and the Underwriter Defendants filed a joinder. On October 30, 2017, the Court entered a Memorandum Opinion denying the motion to dismiss in its entirety.
The case is In re CPI Card Group Inc. Securities Litigation, No. 16-cv-04531 (S.D.N.Y.). Labaton Sucharow represents lead plaintiff Alex Stewart. The defendants are CPI Card, certain of its officers and directors, its controlling shareholders, and its IPO underwriters.
Submit Claim Form
If you purchased or acquired the common stock of CPI pursuant to or traceable to the registration statement issued in connection with CPI’s October 9, 2015 initial public offering of common stock (the “IPO”) and were damaged thereby, you may be entitled to a payment from a class action settlement. To be eligible for a payment, you must submit a Claim Form to the Claims Administrator so that it is postmarked or received no later than January 30, 2019.
A Settlement Hearing was held on February 5, 2019 before the Honorable Lewis A. Kaplan, in Courtroom 21B at the United States District Court for the Southern District of New York, Daniel Patrick Moynihan United States Courthouse, 500 Pearl Street, New York, NY 10007. If you have questions about the settlement, please contact Labaton Sucharow at firstname.lastname@example.org or (888) 219-6877, or contact the Claims Administrator, AB Data, Ltd. at (866) 778-6568.
Information about the settlement can also be found at www.cpisecuritiessettlement.com.