Securities Class Action Filed Against Appliance Recycling Centers of America, Inc.
Violations of federal securities laws as a result of a series of materially false statements. According to the Complaint, ARCA issued materially false and misleading statements to investors and/or failed to disclose that: (1) its financial statements contained errors concerning sales tax related to its appliance replacement programs; and (2) the Company lacked adequate internal controls. On August 6, 2014, the Company announced that the California Board of Equalization (“BOE”) was conducting an examination of sales and use taxes covering ARCA’s appliance replacement sales. On this news, the Company’s shares fell $1.11 per share, or by more than 27%, to close at $2.99 per share on August 7, 2014, damaging investors. The Complaint continues by stating that on February 11, 2015, the Company announced that it expected an assessment of at least $4.0 million from the BOE and would need to restate its previously issued financial statement for the years ended December 28, 2013, December 29, 2012 and December 31, 2011, for the quarters in those years, and for the quarters ended March 29, June 28 and September 27, 2014. On this news, the Company’s shares fell $0.43 per share, or by more than 14%, to close at $2.54 per share on February 12, 2015, further damaging investors. Filed in C.D. Cal.
Lead Plaintiff Deadline: The deadline to file for lead plaintiff in this action is 5/5/2015.
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