DETROIT, Mich.–Several law firms have announced they are investigating potential claims on behalf of shareholders who were burned last November when the parts supplier delayed filing its quarterly report, thus driving shares down more than 21% in one day.
Bronstein, Gewirtz & Grossman, LLC and Pomerantz LLP, Pomerantz LLP, Glancy Promgay & Murray, and at least three other firms are investigating claims on behalf of investors of Motorcar Parts of America Inc. These firms specialize in investigating and suing companies when internal reporting causes gyrations in the share price, impacting shareholders and option holders.
The investigations concern whether MPAA and some of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
Specifically, on November 9, 2018, MPAA announced it was delaying the filing of its quarterly report for the company’s second fiscal quarter, citing a need to evaluate its accounting policies for new business contracts. The company’s stock price fell $4.58 per share, or 21.05%, to close at $17.20 per share on November 9, 2018.
Today, MPAA is trading at between $21.00 and $22.00 per share, roughly where it was trading the day before the announcement of the filing delay.