SAN FRANCISCO--(BUSINESS WIRE)--The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action litigation has been filed on behalf of investors who purchased or otherwise acquired the securities of Orbital ATK, Inc. (“Orbital” or the “Company”) (NYSE: OA) between June 1, 2015 and August 9, 2016, inclusive (the “Class Period”).
If you purchased or acquired Orbital securities during the Class Period, you may move the Court for appointment as lead plaintiff by no later than October 11, 2016. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
Orbital investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the Orbital ATK Securities Class Litigation
Orbital, headquartered in Dulles, Virginia, designs, builds and delivers space, defense and aviation systems for customers around the world, both as a prime contractor and merchant supplier. In September 2012, Orbital entered into a $2.3 billion long-term contract (the “Contract”) with the U.S. Army to manufacture and supply small caliber ammunition at an Army ammunition plant.
The action alleges that throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) Orbital lacked effective control over financial reporting; (ii) as a result, the Company failed to record an anticipated loss on the Contract after the loss became evident in 2015, as required by generally accepted accounting principles; and (iii) as a result of the foregoing, Orbital’s public statements were materially false and misleading at all relevant times.
On August 10, 2016, Orbital announced that the Company would miss the deadline to file its most recent quarter Form 10-Q with the Securities and Exchange Commission. Orbital disclosed that “the Company’s previously issued financial statements for the fiscal year ended March 31, 2015 (‘fiscal 2015’), the nine-month transition period ended December 31, 2015 (‘2015 transition period’), the quarters in fiscal 2015 and the 2015 transition period, and the quarter ended April 3, 2016 ... should no longer be relied upon” as a result of misstatements relating primarily to the Contract. Orbital advised investors that “[a]fter considering the misstatements ... the Company believes that the Contract will result in a net loss over its 10-year term.” Orbital additionally stated these issues “indicate the existence of one or more material weaknesses in its internal control over financial reporting.”
On this news, the price of Orbital shares fell $17.98 per share, or 20.25%, from its closing price of $88.77 on August 9, 2016, to close at $70.79 per share on August 10, 2016, on extremely heavy trading volume.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, Nashville, and Seattle, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of the nation’s top plaintiffs’ law firms for fourteen years. In compiling the list, the National Law Journal examines recent verdicts and settlements and looked for firms “representing the best qualities of the plaintiffs’ bar and that demonstrated unusual dedication and creativity.” Best Lawyers and U.S. News have named Lieff Cabraser as a “Law Firm of the Year” for each year the publications have given this award to law firms.
For more information about Lieff Cabraser and the firm’s representation of investors, please visit www.lieffcabraser.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
