BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith reminds investors of the upcoming October 11, 2016 deadline to file a lead plaintiff motion in the class action lawsuit filed on behalf of investors who purchased or otherwise acquired Orbital ATK, Inc. (“Orbital ATK” or the “Company”) (NYSE: OA) securities between June 1, 2015, and August 9, 2016 (the “Class Period”).
The complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose: (1) that the Company was improperly accounting for items related to a Defense Systems Group contract in violation of Generally Accepted Accounting Principles (“GAAP”); (2) that the Company was overstating revenues and understating losses associated with the operations of the Lake City Plant; (3) that the Company’s internal controls over financial reporting, as well as the Company’s disclosure controls and procedures, contained a material weakness; and (4) that, as a result of the foregoing, Orbital ATK’s financial statements, and Defendants’ statements about Orbital ATK’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
On August 10, 2016, the Company announced the need to restate prior financial statements relating to a long term government contract. Orbital ATK reported issues relating to its $2.3 billion long-term contract with the U.S. Army to manufacture and supply small caliber ammunition at the U.S. Army’s Lake City Army Ammunition Plant. According to Orbital ATK, the restatement will likely reduce previously reported pre-tax operating income by $400 million to $450 million, and reduce 2015 annual revenues by $100 million to $150 million.
On this news, Orbital ATK’s stock price fell $17.98 per share, or over 20%, to close at $70.79 per share on August 10, 2016, on unusually heavy trading volume.
If you purchased Orbital ATK shares, you may move the Court no later than October 11, 2016 to request appointment as lead plaintiff. To be a member of the class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at http://www.howardsmithlaw.com.
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