NEW YORK--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/forterra/) today announced that a class action has been commenced on behalf of purchasers of Forterra, Inc. (“Forterra” or the “Company”) (NASDAQ: FRTA) common stock issued in connection with the Company’s October 21, 2016 initial public offering (the “IPO”). This action was filed in the United States District Court for the Eastern District of New York and is captioned Forrester v. Forterra, Inc., et al., No. 2:17-cv-04763.
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, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller, at 800-449-4900 or 619-231-1058, or via e-mail at djr@rgrdlaw.com. If you are a member of this class, you can view a copy of the complaint as filed at http://www.rgrdlaw.com/cases/forterra/. 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 Forterra, certain of its officers and directors and the underwriters of its IPO with violations of the Securities Act of 1933. Forterra manufactures pipe and various precast products.
The complaint alleges that the Registration Statement used to conduct the IPO contained inaccurate statements and omitted facts necessary to make other statements made therein not misleading. Among other things, the Registration Statement failed to disclose, at the time of the IPO, that organic sales in Forterra’s Drainage and Water segments had significantly declined, that Forterra was experiencing increased pricing pressure due to competition and continued softness in its concrete and steel pipe business, that Forterra had been losing business in its important pipe and precast business due to in large part to operational problems at its production plants, and that Forterra had undisclosed material weaknesses in its internal controls that prevented it from accurately reporting and forecasting its financial results.
The IPO was successful for the Company and the underwriters, who sold 18.42 million shares of Forterra common stock to the public at $18 per share, raising more than $331 million in gross proceeds. As the market learned the truth about the Company’s business and finances following the IPO, the price of Forterra common stock declined and the stock now trades at approximately 75% of its IPO price.
Plaintiff seeks to recover damages on behalf of all purchasers of Forterra common stock issued in connection with the Company’s October 21, 2016 IPO (the “Class”). The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller is widely recognized as the leading law firm advising and representing U.S. and international investors in securities litigation and portfolio monitoring. With 200 lawyers in 10 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For the third consecutive year, the Firm ranked first in both the total amount recovered for investors and the number of securities class action recoveries in ISS's SCAS Top 50 Report. Robbins Geller attorneys have shaped the law in the areas of securities litigation and shareholder rights and have recovered tens of billions of dollars on behalf of the Firm’s clients. Robbins Geller not only secures recoveries for defrauded investors, it also implements significant corporate governance reforms, helping to improve the financial markets for investors worldwide. Please visit rgrdlaw.com/cases/forterra/ for more information.
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