On January 27, 2014 after the market closed, Chefs’ Warehouse, Inc. (“Chefs’ Warehouse” or the “Company”) (Nasdaq: CHEF) issued a press release announcing that the Company expects fiscal 2013 financial results to be below its previously announced guidance.
Additionally, the Company disclosed that its fourth quarter results were negatively impacted by “a significant charge related to an accounting issue” involving its Michaels’ Finer Meats subsidiary. The press release also states “[i]n regard to the accounting issue, the Company has determined that an employee involved in the financial reporting process at its Michaels’ Finer Meats subsidiary acquired in August 2012, deliberately made unsupported adjustments to the subsidiary’s inventory balances resulting in an aggregate overstatement to the subsidiary’s balance as of the closing date of approximately $427,000, which increased to an aggregate overstatement of approximately $905,000 at September 27, 2013. . . .” The overstatement of inventory resulted in an understatement of cost of goods sold.
During a conference call held on January 27, 2014 at least one analyst questioned the Company on how this overstatement escaped Chefs’ Warehouse during the due diligence process.
The Wites Law Firm seeks to uncover additional information about this substantial loss of shareholder value, and potential investor claims against Chefs’ Warehouse.
If you are an investor who purchased Chefs’ Warehouse stock you may have a legal claim against the Company and could serve as the lead plaintiff in a class action lawsuit. If you are interested in being the lead plaintiff, or would like to speak with an attorney about your legal rights, contact the attorneys at Wites Law Firm by email atinfo@witeslaw.com or toll-free at 1 (866) 277-8631.
Wites Law Firm is a law firm with offices in Oakland, California and Lighthouse Point, Florida, with expertise in the representation of investors in securities fraud and investor litigation claims. You may visit its website atwww.wklawyers.com.
Additionally, the Company disclosed that its fourth quarter results were negatively impacted by “a significant charge related to an accounting issue” involving its Michaels’ Finer Meats subsidiary. The press release also states “[i]n regard to the accounting issue, the Company has determined that an employee involved in the financial reporting process at its Michaels’ Finer Meats subsidiary acquired in August 2012, deliberately made unsupported adjustments to the subsidiary’s inventory balances resulting in an aggregate overstatement to the subsidiary’s balance as of the closing date of approximately $427,000, which increased to an aggregate overstatement of approximately $905,000 at September 27, 2013. . . .” The overstatement of inventory resulted in an understatement of cost of goods sold.
During a conference call held on January 27, 2014 at least one analyst questioned the Company on how this overstatement escaped Chefs’ Warehouse during the due diligence process.
The Wites Law Firm seeks to uncover additional information about this substantial loss of shareholder value, and potential investor claims against Chefs’ Warehouse.
If you are an investor who purchased Chefs’ Warehouse stock you may have a legal claim against the Company and could serve as the lead plaintiff in a class action lawsuit. If you are interested in being the lead plaintiff, or would like to speak with an attorney about your legal rights, contact the attorneys at Wites Law Firm by email atinfo@witeslaw.com or toll-free at 1 (866) 277-8631.
Wites Law Firm is a law firm with offices in Oakland, California and Lighthouse Point, Florida, with expertise in the representation of investors in securities fraud and investor litigation claims. You may visit its website atwww.wklawyers.com.
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