Boston, MA 03/14/2014 (wallstreetpr) – Checkpoint Systems, Inc. (NYSE:CKP) is under investigations on claims concerning violations of potential securities laws, according to an announcement by The Shareholders Foundation. The investigation by the law firm will be focused on claims whether a series of statements issued by the company regarding operations and prospects were materially wrong and misleading at the time of issuance.
Checkpoint Systems had reported that its total revenue had declined from a high of $763.75 million for the 52 weeks ending December 25, 2011 to a low of $690.79 million for the 53 weeks ending December 30, 2012. The company as a result reported that its net loss surged from a low of $65.40 million to a high of $145.88 million.
Checkpoint Systems intent to extend its filling date
The announcement of the investigations comes at the back of Checkpoint Systems announcing it would wish to be given more time, before announcing its fourth quarter and full year result for 2013. The company claims the additional time will allow it to revise matters identified during the preparations of the company’s financial statement. The review will also be focused on transaction previously reported on form 8-K filed on June 17, 2011.
One of the key highlights that many investors are awaiting to see with the company’s fourth quarter and full year results, is the impact of its $200 million credit facility that the company announced back in December last year. Checkpoint Systems also in January entered into a partnership agreement with RGIS LLC in a bid of speeding up retailers RFID implementations. The two partners also announced the development of packages aimed at facilitating financial flexibility for retailers, implementing RFID from inception through full deployment.
The company has confirmed it is working to resolve this matters including the review of its independent registered public accounting firm. Checkpoint Systems has also confirmed it is unable to predict the length for the impending review.
The company as a result is planning to file Form 12b-25 (Notification of late filling) with United States Securities Exchange Commission as it does not expect to file its annual report on form 10-k for the fiscal year ending December 29,2013.
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