LawFuel.com – Law Firm Newswire – Law Offices of Howard G. Smith announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of a class (the “Class”) comprising all purchasers of the securities of IEC Electronics Corp. (“IEC” or the “Company”) (NYSE:IEC) between February 8, 2012, and May 21, 2013, inclusive (the “Class Period”).
IEC is a provider of electronic contract manufacturing services to advanced technology companies. The Complaint alleges that during the Class Period the Company issued false and/or misleading statements and/or failed to disclose that: (1) the Company was improperly accounting for work-in-process inventory for one of its subsidiaries; (2) as a result, the Company’s gross profit was overstated during the Class Period; (3) as such, the Company’s financial results were not prepared in accordance with Generally Accepted Accounting Principles (“GAAP”); (4) the Company lacked adequate internal and financial controls; and (5), as a result of the foregoing, the Company’s financial statements were materially false and misleading at all relevant times.
On May 1, 2013 IEC announced it would restate the Company’s consolidated financial statements for the fiscal year ended September 30, 2012, the quarterly periods during fiscal 2012, and the quarter ended December 28, 2012 due to “an error in accounting for work-in-process inventory at one of the Company’s subsidiaries, Southern California Braiding, Inc.” According to the Company, the error resulted in an aggregate understatement of cost of sales and an aggregate overstatement of gross profit of approximately $2.2 million during the restated periods.
No class has yet been certified in this action. Until a class is certified, you are not represented by counsel unless you retain one. If you purchased IEC securities during the Class Period, you have certain rights, and have until August 27, 2013 to move for lead plaintiff status. To be a member of the class you need not take any action at this time or you may retain counsel of your choice. If you purchased IEC stock prior to the Class Period and have any questions concerning this Notice 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 firstname.lastname@example.org, or visit our website at http://www.howardsmithlaw.com.