CBD Energy Shareholder Alert: National Securities Law Firm Announces Investigation of CBD Energy Ltd. for Potential Accounting Irregularities. Encourages Investors to Contact Law Firm for More Information
October 24, 2014
New York, New York
Tripp Levy PLLC, a leading national securities law firm, announces that it is investigating claims on behalf of investors of CBD Energy Ltd. (Nasdaq: CBDE) (“CBD” or the “Company”). On October 24, 2014, CBD announced that its unaudited interim financial statements as of and for the six months ended December 31, 2013 (“December Statements”) cannot be relied upon, and revisions are required.
In the case of audited financial statements for Fiscal Years 2012 and 2013, the Company announced that shareholders should not rely on these statements either with respect to completeness and accuracy of disclosures with respect to related party transactions. In connection with the December Statements, the Company announced that there is uncertainty with respect to: (i) recovery of a deposit of approximately $680,000 recorded as a current asset; (ii) some or all of certain expenditures capitalized in connection with an offering should have been expensed; (iii) disclosures regarding goodwill were adequate and some impairment should have been recognized; and (iv) certain expenses should have been classified in different categories.
Mr. Gerard McGowen, the Company’s CEO, is the potentially related party referenced and will be taking a leave of absence from the Company. As a result of this announcement, the Company’s shares fell over 40% to $1.20 per share in intraday trading.
If you have suffered a significant loss from your investment in CBD common stock and would like to learn more about this investigation 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 is a leading national securities and shareholder rights law firm representing both individual and institutional shareholders and, along with its affiliates, has recovered billions of dollars for shareholders. Tripp Levy PLLC is affiliated with Milberg LLP. Attorney advertising. Prior results do not indicate a similar outcome