NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C. reminds investors that a class action lawsuit has been filed in the U.S. District Court for the District of New Jersey on behalf of all persons or entities who purchased or otherwise acquired Fenix Parts, Inc. (NASDAQ: FENX) securities between May 14, 2015 and October 12, 2016 (the “Class Period”). Investors have until March 13, 2017 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The Complaint alleges that 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, and (3) Fenix was engaging and/or had engaged in conduct that would result in a U.S. Securities and Exchange Commission (“SEC”) investigation. As a result, Defendants’ statements about Fenix’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis throughout the Class Period.
On September 10, 2015, the Street Sweeper published an article focusing on Fenix’s “[m]essy financials, inability to file timely financial reports, and a Nasdaq deficiency notice.” Following this news, Fenix shares declined $1.12 per share on September 10, 2015 to close at $8.47.
On August 16, 2016, Fenix Parts filed a notification of late filing of its Form 10-Q for the second quarter of 2016 with the SEC. The Company said the delay was due to a “recent change in its auditors.” On October 13, 2016, Fenix Parts filed a Form 8-K with the SEC, stating that since it failed to timely file its Form 10-Q for the second quarter of 2016, NASDAQ issued it a notice of delisting. The Company also announced that it received a subpoena from the SEC requiring production of documents relating to its recent change of auditors, its previously announced business combinations, related goodwill impairment charge, effectiveness of internal controls over financial reporting, and internal valuation methodology. Following this news, Fenix shares declined $0.45 per share on October 13, 2016 to close at $3.42.
If you purchased or otherwise acquired Fenix securities during the Class Period and suffered a loss or continue to hold shares purchased prior to the Class Period, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact J. Brandon Walker, Esq. by email at email@example.com, or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating in commercial and securities litigation. For additional information concerning our investigation into Fenix Parts, Inc., please go to www.bespc.com/fenix-parts-inc. For additional information about Bragar Eagel & Squire, P.C., please go to www.bespc.com.