Schmitt Industries, Inc.
A securities class action lawsuit has been filed in the USDC, OR. on behalf of purchasers of the securities of Schmitt Industries, Inc. (NASDAQ: SMIT) between September 1, 2020 and September 20, 2022, both dates inclusive (the “Class Period”). The lawsuit seeks to recover damages for Schmitt Industries investors under the federal securities laws. If you wish to serve as lead plaintiff, you must move the Court no later than December 12, 2022.
On September 20, 2022, after the market closed, Schmitt announced that its previous financial statements “should no longer be relied upon” and would require restating, estimating that “the errors were cumulatively material, resulting in an understatement of $330,203 in expenses for the first three quarters of the fiscal year.
On this news, Schmitt stock fell $0.68, or 17.9%, to close at $3.12 per share on September 21, 2022, hurting investors.
According to the lawsuit, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that:
- Schmitt Industries continuously downplayed its serious issues with internal controls;
- Schmitt Industries’ financial statements from August 31, 2021 to the present included “certain errors”;
- as a result, Schmitt Industries would need to restate its previously filed financial statements for certain periods; and
- as a result, Defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
If you suffered a loss on your investments or would like to inquire about joining an action to recover your loss under the federal securities laws, please complete the form below.
An attorney will contact you at no cost to provide you information about joining the action and answer your questions. Please note that submission of this form does not by itself form an attorney-client relationship nor does filing out this form mean you have joined any lawsuit.