BENSALEM, Pa.--(BUSINESS WIRE)--
Law Offices of Howard G. Smith reminds investors of the upcoming March 13, 2017 deadline to file a lead plaintiff motion in the class action filed on behalf of a class of investors who purchased or otherwise acquired Fenix Parts, Inc. (“Fenix” or the “Company”) (NASDAQ: FENX) securities between May 14, 2015 through October 12, 2016, inclusive (the “Class Period”). Fenix investors have until March 13, 2017 to file a lead plaintiff motion.
On August 16, 2016, Fenix filed a notification of late filing of its Form 10-Q for the second quarter of 2016 with the SEC. According to the Company, a recent change in auditors was the principal reason for the delay. On this news, shares of Fenix fell approximately 5% to close at just $4.48 per share on August 17, 2016. Then on October 13, 2016, Fenix filed its Form 8-K with the SEC, disclosing that due to its failure to file its Form 10-Q for the second quarter of 2016 on time, NASDAQ had issued it a notice of delisting. Additionally, Fenix provided more detail on the delay of the filing of its Form 10-Q for the second quarter of 2016, announcing that it was in receipt of a subpoena from the SEC demanding production of documents concerning, among other things, Fenix’s recent change of auditors as well as its potential lack of internal controls. On this news, shares of Fenix Parts fell over 11% during intraday trading on October 13, 2016.
According to the complaint filed in this lawsuit, throughout the Class Period Defendants made false and/or misleading statements and/or failed to disclose that: (1) Fenix had an inadequate inventory valuation methodology; (2) Fenix had an inadequate methodology to calculate goodwill impairment; (3) Fenix was engaging and/or had engaged in conduct that would result in an SEC investigation; and (4) 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.
If you purchased Fenix shares, you may move the Court no later than March 13, 2017 to request appointment as lead plaintiff. To be a member of the class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to [email protected], or visit our website at http://www.howardsmithlaw.com.
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