SOURCE: Brower Piven, A Professional Corporation

January 20, 2012 16:04 ET

Brower Piven Encourages Investors Who Have Losses in Excess of $500,000 From Investment in CPI Corp. to Inquire About the Lead Plaintiff Position in Securities Fraud Class Action Lawsuit Before the March 13, 2012 Lead Plaintiff Deadline

STEVENSON, MD--(Marketwire - Jan 20, 2012) - Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the United States District Court for the Eastern District of Missouri on behalf of purchasers of the common stock of CPI Corp. ("CPI" or the "Company") (NYSE: CPY) during the period between April 20, 2010 and December 21, 2011, inclusive (the "Class Period").

If you have suffered a net loss for all transactions in CPI Corp. common stock during the Class Period, you may obtain additional information about this lawsuit and your ability to become a lead plaintiff by contacting Brower Piven at www.browerpiven.com, by email at hoffman@browerpiven.com, by calling 410/415-6616, or at Brower Piven, A Professional Corporation, 1925 Old Valley Road, Stevenson, Maryland 21153. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 60 years.

No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than March 13, 2012 and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You are not required to have sold your shares to seek damages or to serve as a Lead Plaintiff.

The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the Company's failure to disclose during the Class Period that CPI's business was performing much worse than defendants acknowledged and was deteriorating as CPI's initiatives to grow the business were not working at the levels represented by defendants. According to the complaint, after, on December 22, 2011, the Company reported a net loss of $7.25 million for the third quarter and that net sales declined 11% to $95.0 million, that CPI had failed its leverage ratio test for its revolving credit facility and failed to obtain an amendment to its credit agreement, thus forcing CPI to stop paying its dividend, the value of CPI shares declined significantly.

If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.

Contact Information

  • CONTACT:
    Charles J. Piven
    Brower Piven, A Professional Corporation
    Stevenson, Maryland
    410/415-6616
    Email Contact