Law firm Glancy Binkow & Goldberg LLP is investigating potential claims on behalf of investors of UniTek Global Services, Inc. regarding the possible breach of federal securities laws by the company.
The probe looks into allegations levelled by UniTek’s investors that certain statements issued by the company related to its business, operations and financial condition were false and misleading. The statements misrepresented the company’s operations and financial performance.
UniTek, on Apr 12, 2013, revealed its estimated preliminary financial results for 2012. The company also disclosed that it will restate the financial results for the interim periods ended Mar 31, 2012, Jun 30, 2012, and Sep 29, 2012, the fiscal year ended Dec 31, 2011, and the interim period ended Oct 1, 2011, resulting in the initiation of investigation process. Consequently, the filing of the company's annual report on Form 10-K for the year ended Dec 31, 2012, will be further delayed.
An ongoing internal investigation, conducted by the Audit Committee with the assistance of an outside independent counsel and a forensic accounting firm, determined that several employees of UniTek's Pinnacle Wireless subsidiary were engaged in fraudulent activities, which resulted in improper revenue recognition.
UniTek has decided to sack the CFO (Chief Financial Officer) and Treasurer, Ronald Lejman, as well as Kevin McClelland, controller and chief accounting officer of the company, based on the recommendation of the Audit Committee.
Blue Bell, Pa.-based UniTek, a provider of engineering, construction management, installation and technical services to the wireless and wireline telecommunications, satellite television, and broadband cable industries in the U.S. and Canada, is now focusing to complete its financial reporting obligations.
UniTek currently retains a short-term Zacks Rank #3 (Hold).
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