NEW YORK, May 21, 2024 (GLOBE NEWSWIRE) — Pomerantz LLP is investigating claims on behalf of investors of PowerFleet, Inc. (“PowerFleet” or the “Company”) (NASDAQ: PWFL). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980.
The investigation concerns whether PowerFleet and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On April 5, 2024, PowerFleet disclosed in a filing with the U.S. Securities and Exchange Commission (“SEC”) that the Company had “received written notice (the ‘Nasdaq Notification Letter’) from the Listing Qualifications Department of The Nasdaq Stock Market LLC (‘Nasdaq’) notifying the Company that it did not timely file its Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the ‘2023 Form 10-K’), as required for continued listing on The Nasdaq Global Market pursuant to Nasdaq Listing Rule 5250(c)(1). Under Nasdaq rules, the Company has 60 calendar days from the date of the Nasdaq Notification Letter to submit to Nasdaq a plan to regain compliance with Nasdaq Listing Rule 5250(c)(1).” In the same filing, the Company also stated “that the Company’s previously released financial statements for the fiscal years ended December 31, 2021 and 2022, and for each of the interim periods during the 2022 and 2023 fiscal years (collectively, the ‘Non-Reliance Periods’), should no longer be relied upon” and will be restated.
Specifically, PowerFleet stated that “the accounting treatment relating to the redemption premium associated with the Company’s Series A convertible preferred stock (the ‘Series A Preferred Stock’) required correction to comply with U.S. generally accepted accounting principles”, which “are expected to result in increases in ‘net loss attributable to common stockholders’ by approximately $5 million, $6 million and $5 million for each of the fiscal years ended December 31, 2021, December 31, 2022 and nine months ended September 30, 2023, respectively, increases in ‘convertible redeemable preferred stock’ by approximately $11 million, $16 million and $21 million as of December 31, 2021, December 31, 2022 and September 30, 2023, respectively, and decreases in ‘additional paid-in capital’ by approximately $11 million, $16 million and $21 million as of December 31, 2021, December 31, 2022 and September 30, 2023, respectively.” PowerFleet also disclosed that it “expect[s] to report a material weakness” in internal control over financial reporting.
On this news, PowerFleet’s stock price fell $0.31 per share, or 6.54%, to close at $4.43 per share on April 8, 2024.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
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CONTACT:
Danielle Peyton
Pomerantz LLP
dpeyton@pomlaw.com
646-581-9980 ext. 7980
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