A law firm announced it is investigating reports of possible securities law violations at Schawk, Inc. (NYSE:SGK) related to its restatement of financial results for the years ending Dec. 31, 2005 and 2006 and the first three quarters of 2007.
According to the investigation on March 5, 2009, the U.S. Securities & Exchange (“SEC”) Commission informed Schawk Inc that the SEC issued a Formal Order of Investigation regarding possible violations of federal securities law. Schawk Inc failed to inform investors of the SEC's investigation until June 11, 2009, when it filed its delayed annual report on Form 10-K.
The day Schawk publicly announced the SEC investigation, Schawk stock (SGK) dropped from $8.08 per share to $7.84 per share. Schawk, Inc., and its subsidiaries provides strategic, creative and executional graphic services and solutions to clients in the consumer products packaging, retail, pharmaceutical and advertising markets. Schawk, Inc (NYSE: SGK) reported $544.41million in Total Revenue with a net income of $30.60million in 2007 and $494.18million in Total Revenue in 2008. Shares of Schawk (SGK) traded at about $7.8 per share recently, down from a 52weekHigh of $18.61 per share and almost $25 per share in 2007.