Our attorneys are investigating potential claims on behalf of investors of Electronics for Imaging, Inc. (NASDAQ: EFII) regarding possible securities law violations.
Share Price Drops on News of Weakness in Internal Controls
On August 3, 2017, after the close of trading, Electronics for Imaging announced that it was postponing a conference call regarding its second quarter 2017 preliminary results in order to enable to the company to better assess the timing of revenue recognition related to certain sales transactions.
Specifically, the company announced that it is examining “certain transactions where a customer signed a sales contract for one or more large format printers and was invoiced, and the printer(s) were stored at a third party in-transit warehouse prior to delivery to the end user.”
Electronics for Imaging further disclosed that it is assessing the effectiveness of its current and historical disclosure and financial reporting controls, and that it expects to report a material weakness in internal control related to these transactions. The company stated that it expects to report that disclosure controls were not effective in prior periods as well.
Following this news, Electronics for Imaging’s share price fell sharply in after-hours trading.
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