Appliance Recycling Alert: National Securities Law Firm Announces Class Action Lawsuit in Connection With Potential Accounting Irregularities. Encourages Investors With Losses to Contact Law Firm for More Information.
March 7, 2015
New York, New York
Tripp Levy PLLC, a leading national securities law firm, announces that a federal securities class action lawsuit was filed against Appliance Recycling Centers of America, Inc. (“ARC” or the “Company”) (Nasdaq:ARCI) and certain of its officers. The lawsuit was filed in the United States District Court for the Central District of California, Case Number 2:15-cv-01654, on behalf of all persons or entities that purchased the common stock of ARC between March 15, 2012 and February 11, 2015 (the “Class Period”).
The complaint alleges that defendants made false and misleading statements in connection with potential accounting irregularities by the Company. Specifically, the complaint alleges, among other things, that (i) ARC’s financial statements contained errors concerning sales tax related to its appliance replacement programs; and (ii) the Company lacked adequate internal controls over its financial reporting. On August 6, 2014, the Company announced that the California Board of Equalization (“BOE”) was conducting an examination of sales and use taxes covering ARC’s appliance replacement sales. Thereafter, on February 11, 2015, the Company announced that it expects an assessment of at least $4.0 million from the BOE, and will 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.
Since the announcement of the BOE examination on August 6, 2014, the Company’s stock has fallen from $4.10 to $2.54 per share on February 12, 2015, a decline of over 61%.
If you purchased shares of ARC during the Class Period and have suffered a loss from your investment in ARC common stock and would like to learn more about this lawsuit and your ability to potentially recover your losses, please contact us toll free at 1-800-511-7037 or contact us via our website.
Tripp Levy PLLC represents individual and institutional shareholders in mergers and acquisitions transactions and, along with its affiliate, has recovered billions of dollars for shareholders in securities actions around the globe. Tripp Levy PLLC is affiliated with the law firm Milberg LLP. The National Law Journal has named Milberg one of the “50 Elite Trial Lawyer Firms” and one of the “50 Leading Plaintiff Firms in America.” Attorney advertising. Prior results do not indicate a similar outcome.