Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the Northern District of Texas on behalf of all persons or entities that purchased the securities of DGSE Companies, Inc. (“DGSE” or the “Company”) (NYSE: DGSE) between April 15, 2011 and April 17, 2012, inclusive (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers and directors (the “Complaint”).
If you purchased shares of DGSE during the Class Period and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 825 East Gate Boulevard, Suite 300, Garden City, NY at (888) 969-4242, by e-mail to firstname.lastname@example.org, or at: http://www.rigrodskylong.com/investigations/dgse-companies-inc-dgse.
DGSE, a Nevada corporation headquartered in Dallas, Texas, buys and sells jewelry, bullion products and rare coins. The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements regarding the Company’s business operations, financial condition and prospects. Specifically, the Complaint alleges that the Defendants participated in a fraudulent scheme and course of business that operated as a fraud or deceit on purchasers of DGSE securities by disseminating materially false and misleading statements and/or concealing material adverse facts. As a result of defendants’ false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period.
According to the Complaint, on April 16, 2012, the Company filed an 8-K with the United States Securities and Exchange Commission (“SEC”) announcing that the Company’s financial statements for the periods ended in December 31, 2007, 2008, 2009, and 2010 could no longer be relied upon, including the interim quarterly periods between the second quarter of 2007 through and including the third quarter of 2011, and had to be restated. Further, the 8-K accused the Company’s then “former Chief Financial Officer” of engaging in improper accounting of inventory and other balance sheet accounts which caused the restatement. As a result, on April 17, 2012, the Company received a written notice from NYSE Amex LLC (the “Exchange”) indicating that the Company was not in compliance with the Exchange’s continued listing criteria, effectively rendering the Company’s stock illiquid and worthless.