SAN DIEGO & PLYMOUTH MEETING, Pa.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of BrightView Holdings, Inc. (NYSE: BV) filed a class action complaint against the company for alleged violations of the Securities and Exchange Act of 1933 pursuant to the company's July 2018 initial public offering ("IPO"). BrightView provides commercial landscaping services in the U.S.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/brightview-holdings-may-19/
According to the complaint, BrightView held its IPO in July 2018, offering its stock at $22.00 per share and generating over $501.2 million in proceeds based on offering documents that failed to disclose that a material portion of BrightView's contracts were underperforming or represented undesirable costs to the company and that the company's exit strategy to end its non-profitable contracts would negatively impact future revenue.
Just a month after the IPO, BrightView reported negative financial results and disclosed for the first time that its Maintenance Services revenue was negatively impacted by its Managed Exit strategy. On November 27, 2018, BrightView disclosed that its Managed Exit strategy would result in a decline in revenue of $10 million over the course of fiscal year 2019. Then, on February 7, 2019, on a conference call with investors, the company revealed that underperforming contracts accounted for a $23.1 million drop in revenue for full year 2018, and it expected a loss in revenue of over $25 million for 2019. BrightView's disclosures have caused the stock to steadily decline, and it now trades at around $16.00 per share.
BrightView Holdings Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leo Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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