NEW YORK, April 18, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, is investigating potential claims against PowerFleet, Inc. (“PowerFleet” or the “Company”) (NASDAQ: PWFL) on behalf of PowerFleet stockholders. Our investigation concerns whether PowerFleet has violated the federal securities laws and/or engaged in 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.
If you purchased or otherwise acquired PowerFleet shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Marion Passmore by email at investigations@bespc.com, by telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com
