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Law firms target IEC over restatements

Rochester Business Journal
May 3, 2013

A pair of law firms has launched separate investigations against IEC Electronics Corp. on behalf of shareholders. The investigations center around some of the firm’s recent financial statements.

New York City-based Levi & Korsinsky LLP and Los Angeles-based Glancy Binkow & Goldberg LLP said Friday they are investigating potential claims on behalf of those who purchased IEC stock from Feb. 8, 2012 to April 30.

The claims relate to the Newark, Wayne County firm’s consolidated financial statements for the fiscal year ended Sept. 30, 2012, the quarterly periods during fiscal 2012 and the quarter ended Dec. 28, 2012, which are being restated because of an accounting error related at one of IEC’s subsidiaries.

IEC disclosed Wednesday in a filing with the Securities and Exchange Commission that the financial statements contained an error in accounting for work-in-process inventory at Southern California Braiding Inc. The error resulted in an aggregate understatement of cost of sales and an aggregate overstatement of gross profit of some $2.2 million, the filing states.

Barry Gilbert, IEC chairman and CEO said it is not uncommon when there are corporate restatements for lawyers to show an interest. He said there was little additional to comment on.

IEC ranked 15th on the most recent Rochester Business Journal list of manufacturers with 592 local workers.

Shares of IEC (NYSE MKT: IEC) were trading late afternoon at $4.99, down 4 percent from Thursday’s close of $5.20.

(c) 2013 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or e-mail service@rbj.net.

 


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