#United States #New York #Securities Fraud #Pomerantz LLP #CPI Card Group

Pomerantz Law Firm Investigates CPI Card Group

The Pomerantz Law Firm is currently engaged in a thorough investigation on behalf of investors of CPI Card Group Inc. (NASDAQ: PMTS) amid allegations of securities fraud. This scrutiny comes in response to the company's recent financial performance, which fell short of market expectations.

On August 8, 2025, CPI Card Group disclosed its second-quarter financial results, revealing striking discrepancies between their earnings and investor expectations. The reported GAAP earnings per share stood at $0.04, which was a stark miss of $0.46 against the consensus estimate. Revenue was also disappointing, clocking in at $129.75 million, missing projections by $3.21 million. In addition to these subpar results, the company adjusted its annual sales forecast, suggesting a low double-digit to mid-teens growth projection for 2025. This was a significant update from their previous outlook that anticipated mid-to-high single-digit growth.

CPI Card Group attributed this lowered outlook to the integration of Arroweye Solutions, a company providing on-demand payment card solutions that CPI acquired in May 2025. However, the company also acknowledged the adverse effects brought about by recent changes in accounting practices concerning revenue recognition for work-in-process orders.

In the wake of these revelations, CPI's stock witnessed a sharp decline, dropping by $5.37 per share or approximately 28.83%, closing at $13.25 on the same day. This steep fall not only alarmed investors but also prompted the securities law firm Pomerantz to investigate whether CPI and its executives may have partaken in fraudulent behavior or other unlawful business practices that misled shareholders.

Pomerantz LLP is no stranger to these investigations; the firm has a longstanding reputation in the realm of corporate, securities, and antitrust litigation. Founded by Abraham L. Pomerantz, the firm has been fighting for the rights of investors and has successfully recovered significant damages on behalf of numerous clients in past cases. The firm is headquartered in New York, with additional offices across major U.S. cities and international locations, including London and Paris.

Investors who believe they may have been adversely affected by CPI Card Group's financial disclosures are encouraged to reach out to Pomerantz’s representative, Danielle Peyton, for more information on how to join this potential class action. Interested parties can contact Danielle via email or phone to discuss their involvement in the investigation.

The scrutiny surrounding CPI Card Group's business practices underscores the complexities of financial oversight and the critical need for transparency in corporate governance. With investors increasingly vigilant about their holdings, firms like Pomerantz are positioned to navigate these turbulent waters, providing representation for those seeking justice in the aftermath of alleged corporate misdeeds.