NEW YORK--(BUSINESS WIRE)--Scott+Scott Attorneys at Law LLP (“Scott+Scott”), a national securities and consumer rights litigation firm, is notifying investors that a federal class action lawsuit has been filed against ADT Inc. (NYSE:ADT) (“ADT” or the “Company”) and other defendants, related to alleged violations of federal securities laws. If you purchased ADT common stock pursuant or traceable to the Company’s January 2018 initial public offering (the “IPO”), you are encouraged to contact a Scott+Scott attorney at (844) 818-6982 for additional information.
ADT is a home security company.
The lawsuit claims defendants made false and/or misleading statements and/or failed to disclose: (1) historical metrics integral to appraising ADT “key value drivers” and the likely and consequently materially adverse effects on ADT’s future results, share price, and prospects; (2) the already occurring 75% increase in year-over-year losses; (3) the other complete yet undisclosed materially negative fourth-quarter (“4Q”) and full-year (“FY”) 2017 results and trends; (4) ADT’s dependence on the Trump tax cut to meet even the extreme low end of its 2017 estimate ranges; and that (5) as a result, ADT’s public statements were materially false and misleading at all relevant times.
When the true details entered the market, the lawsuit claims that investors suffered damages.
On March 15, 2018, ADT announced disappointing 4Q and FY 2017 earnings and other financial results, stating, in relevant part: “[T]he Company reported net income of $638 million, up from negative $85 million last year, and diluted earnings per share of $0.99 versus $(0.13) in the prior year. Excluding special items, diluted earnings per share were $(0.06) versus $(0.07) in the same period last year. The net income results include a $690 million tax benefit due to the 2017 Tax Reform.”
On this news, the price of ADT shares declined 12.5% on March 15, 2018, to close at $8.93.
As of market close on May 22, 2018, the price of ADT stock was $7.64, a decline of over 45% from the $14 per share IPO price.
What You Can Do
If you purchased ADT stock on or after January 2018, or if you have questions about this notice or your legal rights, please contact attorney Joe Pettigrew at (844) 818-6982, or at jpettigrew@scott-scott.com. Investors have until July 20, 2018, to move for lead plaintiff.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.
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