#United States #New York #Fraud Investigation #Pomerantz Law #CPI Card Group

Pomerantz Law Firm Investigates CPI Card Group

Pomerantz LLP, a prominent law firm recognized for its work in securities class action litigation, is currently investigating claims on behalf of investors associated with CPI Card Group Inc. (NASDAQ: PMTS). The firm aims to determine whether CPI and its leadership engaged in any fraud or illicit business practices that may have impacted investors.

The investigation was spurred by CPI's recent announcement on August 8, 2025, regarding its second-quarter financial results, which significantly fell short of analysts' expectations. The report revealed a GAAP earnings-per-share of $0.04, in stark contrast to the anticipated figure of $0.50, a miss by $0.46. Additionally, the company posted a revenue of $129.75 million, missing estimates by $3.21 million, raising immediate red flags for stakeholders.

CPI also revised its outlook for 2025, downgrading its growth projections. Initially estimating a mid-to-high single-digit sales increase, the company revised its forecast to a range of low double-digit to mid-teens growth. This alteration can be attributed partly to the inclusion of Arroweye Solutions, Inc., an on-demand payment card solutions provider acquired in May 2025; however, it was offset by the negative effects arising from a recent accounting change concerning revenue recognition for work-in-process orders.

Following these revelations, CPI’s stock experienced a severe decline, plummeting by $5.37 per share, equating to a 28.83% decrease which resulted in a closing price of $13.25 on the same day. This substantial drop highlights the significant impact of the financial results on investor confidence and raises questions about the company's governance and transparency.

Pomerantz LLP, noted for its history dating back over 85 years in protecting the rights of investors, now seeks to connect with affected parties. Investors wishing to take part in this investigation or join a potential class action lawsuit are encouraged to reach out to Danielle Peyton at Pomerantz via email or phone.

In addition to this ongoing investigation, Pomerantz has successfully represented numerous investors in securing multimillion-dollar recoveries for issues related to securities fraud and corporate misbehavior. The firm has a distinguished reputation in the field of class action law, with offices spanning across major cities including New York, Chicago, and Los Angeles, as well as international locations in London, Paris, and Tel Aviv.

As this investigation unfolds, it adds to the mounting scrutiny surrounding CPI Card Group and its operational practices. Investors observing the developments should remain vigilant, as outcomes could potentially lead to significant legal repercussions for the company.

For further updates on this case, and to explore the possibility of receiving compensation, interested parties should follow Pomerantz LLP’s advice to stay informed about their rights against potential corporate misconduct.