Commercial Vehicle Group – NASDAQ: CVGI
Investigation of Securities Claims Against Commercial Vehicle Group, Inc. – CVGI
Kehoe Law Firm, P.C. is investigating potential securities claims on behalf of shareholders of Commercial Vehicle Group, Inc. (“Commercial Vehicle” or the “Company”) (NASDAQ: CVGI) resulting from allegations that Commercial Vehicle Group may have issued materially misleading business information to the investing public.
On March 16, 2020, after the market closed, Commercial Vehicle issued a press release announcing its fourth quarter and full year 2019 financial results. Commercial Vehicle disclosed that certain financial statements for the fiscal year ended December 31, 2018 and certain 2019 quarterly periods should no longer be relied upon due to misstatements.
The Company, among other things, stated:
On March 12, 2020, the Audit Committee of the Board of Directors of the Company, after considering the recommendations of management, and discussing such recommendations with outside SEC counsel and KPMG LLP, the Company’s independent registered public accounting firm, concluded that our audited consolidated financial statements as of and for the fiscal year ended December 31, 2018, included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018, and our unaudited consolidated financial statements as of and for the quarterly periods ended March 31, 2019 and 2018, June 30, 2019 and 2018, and September 30, 2019 and 2018, included in our Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2019, June 30, 2019 and September 30, 2019, should no longer be relied upon due to misstatements (the “restatement”).
With respect to the impact of the restatement on the Consolidated Statements of Operations for 2018 and for the nine months ended September 30, 2019, cost of revenues were understated by $3.9 million and $4.6 million, respectively, net income was overstated by $3.0 million and $3.5 million, respectively, and diluted earnings per share was overstated by $0.10 and $0.11, respectively. Total Assets in the Consolidated Balance Sheets as of December 31, 2018 and as of September 30, 2019 were overstated by $5.4 million and $9.0 million, respectively. Costs relating to an independent investigation, which is complete, arising from the restatement referenced above are estimated to be $3 million and were incurred in the first quarter of 2020. [Emphasis added.]
On this news, Commercial Vehicle’s share price fell as much as $0.33 per share, or more than 13%, during intraday trading on March 17, 2020, thereby injuring investors.
Are You a Commercial Vehicle Group Investor Who Has Suffered Losses?
Commercial Vehicle Group investors who purchased, or otherwise acquired, CVGI securities and suffered losses are encouraged to contact either Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], or John Kehoe, Esq, (215) 792-6676, Ext. 801, [email protected], to learn about potential legal claims.
Kehoe Law Firm, P.C.
