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Appliance Recycling Centers of America (NASDAQ:ARCI) Investor Alert: Lawsuit Alleges Violations of Securities Laws

Via: ReleaseWire

Updated 7:30 AM CDT, Tue, March 10,2015

A lawsuit was filed on behalf of investors in Appliance Recycling Centers of America (NASDAQ:ARCI) shares over alleged securities laws violations. Deadline: May 5, 2015. NASDAQ:ARCI investors should contact the Shareholders Foundation.

San Diego, CA -- (ReleaseWire) -- 03/10/2015 -- An investor, who purchased shares of Appliance Recycling Centers of America (NASDAQ:ARCI), filed a lawsuit in the U.S. District Court for the Central District of California over alleged violations of Federal Securities Laws by Appliance Recycling Centers of America in connection with certain allegedly false and misleading statements made between March 15, 2012 and February 11, 2015.

Investors who purchased a significant amount of shares of Appliance Recycling Centers of America (NASDAQ:ARCI) between March 15, 2012 and February 11, 2015, have certain options and for certain investors are short and strict deadlines running. Deadline: May 5, 2015. NASDAQ:ARCI investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

According to the complaint the plaintiff alleges on behalf of purchasers of Appliance Recycling Centers of America (NASDAQ:ARCI) common shares between March 15, 2012 and February 11, 2015, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that Appliance Recycling Centers of America issued allegedly materially false and misleading statements to investors and/or allegedly failed to disclose that Appliance Recycling Centers of America's financial statements contained errors concerning sales tax related to its appliance replacement programs and that Appliance Recycling Centers of America lacked adequate internal controls.

Appliance Recycling Centers of America reported that its Total Revenue rose from $114.31 million for the 52 weeks period that ended on Dec. 29, 2012 to $129.06 million for the 52 weeks period that ended on Dec. 28, 2013 and that its Net Loss of $3.85 million for the 52 weeks period that ended on Dec. 29, 2012turned into a Net Income of $3.32 million for the 52 weeks period that ended on Dec. 28, 2013. Shares of Appliance Recycling Centers of America (NASDAQ:ARCI) grew from $1.20 per share in March 2013 to as high as $4.23 per share in July 2014.

On August 6, 2014, Appliance Recycling Centers of America reported its second quarter results. Among other things, Appliance Recycling Centers of America disclosed that the California Board of Equalization is currently conducting a sales and use tax examination covering the company's California operations for 2011, 2012 and 2013

Shares of Appliance Recycling Centers of America (NASDAQ:ARCI) declined to $2.90 per share on August 8, 2014.

On February 11, 2015, Appliance Recycling Centers of America (NASDAQ:ARCI) reported that it has applied for and, as of February 9, 2015, received approval from the California Board of Equalization to participate in the California Board of Equalization's Managed Audit Program, which allows Appliance Recycling Centers of America to conduct a self-examination related to state sales and use taxes.

Appliance Recycling Centers of America said that it believes that the outcome from the Managed Audit Program will likely result in a Notice of Determination from the California Board of Equalization of an assessment of at least $4.0 million ($2.6 million net of income taxes), covering the entire period under audit.

Appliance Recycling Centers of America also said that it anticipates that a pre-tax charge to earnings will be required and that previously issued unaudited consolidated financial statement for the fiscal quarters ended March 29, June 28 and September 27, 2014 and consolidated financial statements for the years ended December 28, 2013, December 29, 2012 and December 31, 2011 and the quarters in the years then ended will need to be restated. Shares of Appliance Recycling Centers of America (NASDAQ:ARCI) declined to as low as $2.41 per share on February 12, 2015.

On March 6, 2015, NASDAQ:ARCI shares closed at $2.69 per share.

Those who purchased shares of Appliance Recycling Centers of America (NASDAQ:ARCI) have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com

For more information on this press release visit:
http://www.releasewire.com/press-releases/appliance-recycling-centers-of-america-nasdaqarci-investor-alert-lawsuit-alleges-violations-of-securities-laws-585320.htm

Media Relations Contact
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