PHOENIXVILLE, PA -- An independent law firm today announced an investigation into IEC Electronics for possible violations of US securities laws.

The Young Law firm is investigating potential claims on behalf of investors in IEC, specifically certain statements issued by the EMS firm between Feb. 8, 2012 and April 30, 2013 concerning the company’s business.

IEC, a Tier III contract electronics assembler based in Newark, NY, announced on May 1 it is restating its financials for the quarters ended Dec. 30, 2011; Mar. 30, June 29, and Dec. 28, 2012.

The investigation is related to the IEC's announcement that the restatements are due to "an error in accounting for work-in-process inventory at one of the company's subsidiaries, Southern California Braiding, Inc." According to the company, the error "resulted in an aggregate understatement of cost of sales and an aggregate overstatement of gross profit during all such Restated Periods of approximately $2.2 million."

The next day, IEC's common stock price dropped by $0.50 per share, or nearly 9%.

The law firm has set up a toll-free number for investors: 888-452-7252.

Rapid and large price swings are not unusual following such disclosures. Neither are lawsuits following a significant stock price drop based on unexpected changes in revenue. Another major EMS company, Nam Tai, is also being pursued by lawyers.