Wohl & Fruchter LLP Announces Investigation into Financial Reporting Errors at IEC Electronics Corp.
NEW YORK--(BUSINESS WIRE)--The law firm of Wohl & Fruchter LLP announces that it is investigating financial reporting errors at IEC Electronics Corp. (IEC) (NYSE: IEC).
On May 1, 2013, after the market closed, IEC announced that its financial statements for the fiscal year ended September 30, 2012, the quarterly periods during fiscal 2012, and the quarter ended December 28, 2012 (collectively, the "Restated Periods") require restatement due to an error in accounting for work-in-process inventory at one of the Company's subsidiaries, Southern California Braiding, Inc. At the time, the Company estimated that this error resulted in an understatement of cost of sales, and an overstatement of gross profit, during the Restated Periods of approximately $2.2 million.
On May 13, 2013, due to an internal review of the facts and circumstances giving rise to the restatement, IEC filed a Notification of Late Filing with the SEC extending the filing deadline for its Q2-2013 10-Q from May 13, 2013 to May 20, 2013.
On May 20, 2013, the IEC announced that due to its ongoing internal review of the restatement, the Company will not meet the extended filing deadline and the Company's Q2-2013 10-Q will not be filed on a timely basis.
On the above news, IEC shares have declined over 26% from a close of $5.70/share on May 1, 2013 to $4.20/share as of midday on May 20, 2013.
Persons with relevant information, and IEC shareholders with questions about this investigation, are invited to contact the attorney below, or our Firm by calling 866.582.8140.
Additional information is available on our website at: http://www.wohlfruchter.com/cases/iec.
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Wohl & Fruchter LLP represents plaintiffs in litigation arising from fraud and other fiduciary breaches by corporate managers, as well as other complex litigation matters. Please visit our website, www.wohlfruchter.com, to learn more about our Firm, or contact one of our partners.
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