RADNOR, Pa.--(BUSINESS WIRE)--The law firm of Kessler Topaz Meltzer & Check, LLP announces that a shareholder class action lawsuit has been filed against Forterra, Inc. (Nasdaq: FRTA) (“Forterra” or the “Company) on behalf of purchasers of the Company’s securities issued pursuant and/or traceable to the Company’s initial public offering on or about October 21, 2016 (the “IPO”).
Forterra investors who purchased securities pursuant or traceable to the IPO Securities may, no later than October 13, 2017, petition the Court to be appointed as a lead plaintiff representative of the class.
Investors who wish to discuss their legal rights or interests with respect to this action are encouraged to contact Kessler Topaz Meltzer & Check (Darren J. Check, Esq., D. Seamus Kaskela, Esq. or Adrienne Bell, Esq.) at (888) 299–7706 or (610) 667–7706, or online at: https://www.ktmc.com/new-cases/forterra-inc#join.
According to the complaint, Forterra, previously known as Hanson Building Products, is a Texas-based building materials manufacturing company that manufactures pipe and various precast products.
On or about July 8, 2016, Forterra filed with the SEC a Registration Statement on Form S-1, which would later be utilized for the IPO following several amendments made in response to comments received from the SEC. On October 19, 2016, the SEC declared the Registration Statement effective. On or about October 21, 2016, Forterra priced the IPO and filed the final Prospectus for the IPO, which forms part of the Registration Statement.
The company sold 18.42 million shares of Forterra common stock to the public at $18 per share, raising $331.56 million in gross proceeds.
The complaint alleges that the defendants made false and/or misleading statements and/or failed to disclose that, among other things, at the time of the IPO: organic sales in Forterra’s Drainage and Water segments had significantly declined; Forterra was experiencing increased pricing pressure due to competition and continued softness in its concrete and steel pipe business; 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 Forterra had undisclosed material weaknesses in its internal controls that prevented it from accurately reporting and forecasting its financial results.
As of the date of the filing of the complaint, Forterra common stock was trading below $5 per share, a decline of approximately 75% from the IPO price.
Forterra investors may, no later than October 13, 2017, petition the Court to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class in the action. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com.