NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Forterra, Inc. (“Forterra” or the “Company”) (NasdaqGS:FRTA) of the October 13, 2017 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you purchased Forterra common stock issued pursuant and/or traceable to the Company’s October 21, 2016 initial public offering (the "IPO") and/or between October 18, 2016 and August 14, 2017 and would like to discuss your legal rights, click here: www.faruqilaw.com/FRTA. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org.
The lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of all those who purchased Forterra common stock issued pursuant and/or traceable to the Company’s IPO and/or between October 18, 2016 and August 14, 2017. The case, Disayawathana v. Forterra, Inc. et al No. 2:17-cv-04824 was filed on August 16, 2017, and has been assigned to Judge Arthur Donald Spatt.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that (1) the Company’s initiatives were not producing organic growth; (2) as such, the Company was not likely to experience organic growth; (3) the Company was facing increased pricing pressures, operational problems at is plants, and rising bad debt expenses; (4) the Company had material weaknesses in internal controls relating to inventory accounting; (5) as a result of the foregoing, Defendants’ statements were false and misleading.
Specifically, on May 15, 2017, the Company issued a press release revealing that it had created no organic growth for the first quarter of 2017. The Company also stated that it was continuing to work on its previously announced initiatives to improve income from operations, and that the Company expects these initiatives to require significant investment.
On this news, the Company’s stock price fell from $19.72 per share on May 12, 2017, to a closing price of $14.93 per share on May 15, 2017 – a $4.79 or a 24.29% drop.
Then, on August 10, 2017, the Company issued another press release, this time disclosing that it had produced no organic growth for the second quarter of 2017. The Company claimed that net sales were negatively affected by Tropical Storm Cindy, excessive rainfall events around the country, unanticipated competitive pricing pressure in certain areas, and a decline in average sales prices of products sold.
Following this disclosure Forterra’s share price declined from $8.27 on August 9, 2017, to a closing price of $3.51 on August 10, 2017 – a $4.76 or a 57.56% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. 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. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Forterra’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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