SAN DIEGO--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/adt/) today announced that a class action has been commenced in the United States District Court for the Southern District of Florida on behalf of purchasers of The ADT Corporation (“ADT”) (NYSE:ADT) common stock during the period between November 27, 2012 and January 29, 2014 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/adt/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges ADT and certain of its current and former officers and directors with violations of the Securities Exchange Act of 1934. Through a variety of brands, including ADT, ADT Pulse and Companion Services, ADT provides electronic security, interactive home and business automation, and related monitoring services to approximately 6.5 million residential and small business customers in the United States and Canada.
The complaint alleges that throughout the Class Period, defendants disseminated false and misleading statements to the investing public about the Company’s financial condition and future business prospects for fiscal 2013 and 2014, including representations concerning the Company’s strong current financial condition and bullish forecasts of future financial results. In fact, ADT was experiencing reduced non-Pulse demand, accelerating churn rate and attrition, and increased advertising and service costs, all of which were negatively impacting ADT’s recurring revenue, margins and earnings, such that the Company did not have a reasonable basis for its 2013 and 2014 quarterly and full-year financial forecasts. As a result of defendants’ false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period, trading as high as $49.73 per share on March 13, 2013.
On November 25, 2013, ADT announced in a press release that the Company would repurchase the vast majority of board member Keith A. Meister and Corvex Management LP’s ADT common stock position at an above-market price of $44.01 per share, and that, notwithstanding Meister having joined the Board of Directors less than one year earlier, he was resigning from ADT’s Board effective immediately. On this disclosure, investors began to question the veracity of ADT’s earnings forecasts, and the price of ADT common stock dropped nearly 10% to $40.85 per share.
Then, on January 30, 2014, before the market opened, ADT issued a press release announcing severely disappointing first quarter 2014 results, falling far short of ADT’s previous bullish EPS guidance and Wall Street’s consensus estimate. Investors reacted swiftly, and the price of ADT stock fell 17% from $37.81 per share to $31.40 per share.
Plaintiff seeks to recover damages on behalf of all purchasers of ADT common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller, with more than 200 lawyers in ten offices, represents U.S. and international institutional investors in contingency-based securities and corporate litigation. The firm has obtained many of the largest securities class action recoveries in history, including the largest jury verdict ever in a securities class action. Please visit http://www.rgrdlaw.com for more information.