Robbins Umeda LLP Announces an Investigation of Schawk, Inc. for Shareholders
Robbins Umeda LLP, a shareholder rights litigation firm, has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by certain officers and directors at Schawk, Inc. (NYSE: SGK). Schawk provides graphic services and solutions to clients in the consumer products packaging, retail, pharmaceutical, and advertising markets in North America, Europe, Asia, and Australia. The company was founded in 1953 and is headquartered in Des Plaines, Illinois.
Robbins Umeda LLP’s investigation focuses on whether the directors and officers of Schawk breached their fiduciary duties to shareholders by causing or permitting the company to issue false and/or misleading statements regarding the company’s business and financial conditions and by failing to maintain a proper system of internal accounting controls.
On May 17, 2011, Schawk received a Wells Notice from the U.S. Securities and Exchange Commission (“SEC”) stating that the SEC was considering instituting proceedings against the Company for failing to maintain adequate books and records and an adequate system of internal controls. According to the company, the Wells Notice is related to the company’s 2008 earnings restatement of its earnings reports for fiscal 2005 and 2006 and the first three quarters of fiscal 2007. The restatement was necessary because Schawk’s earnings reports understated the development costs for software sold to third parties and for internal use, as well as problems with the timing of the recognition of revenue and costs at its digital solutions business.
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