BENSALEM, Pa.--(BUSINESS WIRE)-- Law Offices of Howard G. Smith announces that shareholders of DGSE Companies Inc. (“DGSE” or the “Company”) (NYSE MKT:DGSE) have until November 6, 2012 to move the Court to serve as lead plaintiff in the securities fraud class action lawsuit filed in the United States District Court for the Northern District of Texas. The lawsuit was filed on behalf of a class (the “Class”) comprising all purchasers of the common stock of DGSE between April 15, 2011 and April 17, 2012.
DGSE, together with its subsidiaries, buys and sells jewelry, bullion products and rare coins to wholesale and retail customers in the United States. The Company offers finished jewelry, gem stones and gold jewelry components, as well as custom jewelry to order and jewelry repair services. The Complaint alleges that DGSE misrepresented and/or failed to disclose material adverse facts concerning the Company’s business, operations and prospects.
On April 16, 2012 the Company filed a Form 8-K with the Securities and Exchange Commission announcing that the Company’s financial statements for the periods ended December 31, 2007, 2008, 2009, and 2010 could no longer be relied upon -- including the interim quarterly periods between the second quarter of 2007 through and including the third quarter of 2011 -- and had to be restated.
According to the Complaint, the Form 8-K accused the Company’s then “former Chief Financial Officer” of engaging in improper accounting of inventory and other balance sheet accounts, which caused the restatement. Consequently, on April 17, 2012 NYSE AMEX halted trading in DGSE stock, effectively rendering it illiquid.
No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you are a member of the Class described above, you have certain rights, and have until November 6, 2012 to move for lead plaintiff status. To be a member of the class you need not take any action at this time, or may retain counsel of your choice. If you wish to discuss this action or learn more concerning your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at http://www.howardsmithlaw.com.
Source: Law Offices of Howard G. Smith