Cohen Milstein Sellers & Toll PLLC Announces the Investigation of DGSE Companies, Inc.
A class action lawsuit was filed in the U.S. District Court for the Northern District of Texas by another law firm on behalf of purchasers of the common stock of DGSE Companies, Inc. (NYSE: DGSE) between April 15, 2011 to April 17, 2012, inclusive (the "Class Period").
The complaint alleges that DGSE and certain of its officers and directors ("Defendants") falsely attested to the accuracy of DGSE's financial statements during the Class Period.
On October 31, 2011, DGSE reported that effective November 1, 2011, defendant L.S. Smith would resign as Chairman and CEO. Less than one month later, the Company reported that its CFO, defendant John Benson, had "retired from his position."
On April 16, 2012, DGSE filed an 8-K in which it reported that it would be unable to timely file its Form 10-K for 2011. The Company also reported that due to accounting irregularities, its annual and quarterly financial statements dating back to the second quarter of 2007 and through the third quarter of 2011 should no longer be relied upon and might need to be restated:
ManagementObelieves that the Accounting Irregularities are the result of improper accounting of inventory and other balance sheet accounts by the former Chief Financial Officer...commencing during, and continuing subsequent to, the second calendar quarter of 2007.
Trading in DGSE shares was halted by the NYSE on April 17, and the shares last traded at $7.43 on April 16.
On May 10, 2012, DGSE announced that it had terminated its Executive Vice President of Consumer Finance, and on June 4, the Company announced that it had dismissed its auditor Cornwell Jackson, which had advised by letter that DGSE "did not have the internal controls necessaryOto develop reliable financial statements."
A week later the Company revealed that the SEC had initiated an investigation into the accounting irregularities at DGSE "to determine whether any persons or entities engaged in, or are about to engage in, any possible violations of the federal securities laws." Since that time, the Company has provided no further information regarding the accounting irregularities or the SEC investigation.
Cohen Milstein encourages all investors who purchased DGSE common stock April 15, 2011 to April 17, 2012 or former employees with information concerning this matter to contact the firm.
If you are a DGSE shareholder and would like to discuss your right to recover for your economic loss, you may, without any cost or obligation, call Cohen Milstein's Managing Partner, Steven J. Toll at (888) 240-0775 or (202) 408-4600, or email him at email@example.com. If you wish to serve as lead plaintiff, you must move the Court no later than November 6, 2012 to request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. To be appointed lead plaintiff, the Court must decide that your claim is typical of the claims of other class members, and that you will adequately represent the class. Your share in any recovery will not be enhanced or diminished by the decision whether or not to serve as a lead plaintiff. Any member of the proposed class may retain Cohen Milstein Sellers & Toll PLLC or other attorneys to serve as your counsel in this action, or you may do nothing and remain an absent class member.
Cohen Milstein Sellers & Toll PLLC has significant experience in prosecuting investor class actions and actions involving securities fraud. The firm has offices in Washington, D.C., New York, Chicago, Philadelphia and West Palm Beach, and is active in major litigation pending in federal and state courts throughout the nation.
The firm's reputation for excellence has repeatedly been recognized by courts which have appointed the firm to lead positions in complex multi-district or consolidated litigation. Cohen Milstein Sellers & Toll PLLC has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total over a billion dollars. Prior results do not guarantee a similar outcome. For more information visit www.cohenmilstein.com.
If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:
Steven J. Toll, Esq. Tyler Gaffney Cohen Milstein Sellers & Toll PLLC 1100 New York Avenue, N.W. West Tower, Suite 500 Washington, D.C. 20005 Telephone: (888) 240-0775 or (202) 408-4600 Email: firstname.lastname@example.org; email@example.com