NEW YORK--(BUSINESS WIRE)--Pomerantz LLP announces that a class action lawsuit has been filed against ADT Inc. (“ADT” or the “Company”) (NYSE: ADT) and certain of its officers. The class action, filed in United States District Court, Southern District of Florida, and docketed under index 18-cv-80668, is on behalf of a class consisting of investors who purchased or otherwise acquired ADT common stock pursuant or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with ADT’s January 2018 initial public offering (the “Offering” or “IPO”).
If you are a shareholder who purchased ADT common stock pursuant or traceable to ADT’s January 2018 IPO, you have until July 20, 2018, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at email@example.com or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
ADT is a home security company taken private by Apollo Global in May 2016 and taken public again via the January 2018 IPO.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) ADT’s Registration Statement made material misrepresentations and omissions by failing to disclose historical metrics integral to appraising ADT “key value drivers.”; (ii) ADT’s discussions of risk factors did not mention, or adequately describe the risk posed by, the then already occurring 75% increase in year-over-year losses, nor the other complete yet undisclosed materially negative 4Q and FY 2017 results and trends, nor ADT’s dependence on the Trump tax cut to meet even the extreme low end of its 2017 estimate ranges, nor the omission of historically critical metrics, nor the likely and consequent materially adverse effects on the Company’s future results, share price, and prospects; (iii) Defendants’ failure to disclose the then complete materially negative 4Q and FY 2017 results and trends, and ADT’s dependence on the Trump tax cut to meet even the extreme low end of its 2017 estimate ranges, much less the likely material effects they would have on ADT’s share price, rendered false and misleading the Registration Statement’s many references to known risks that “if” occurring “might” or “could” affect the Company; and (iv) as a result, ADT’s public statements were materially false and misleading at all relevant times.
On March 15, 2018, ADT announced its disappointing fourth-quarter and full-year 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 for ADT shares declined nearly 20%, from a high of $10.72 per share on March 15, 2017, to a low of $8.63 per share on March 16, 2017. As of the time of the filing of this action, ADT shares continue to trade below $9 per share, a decline of over 35% from the $14 per share offering price.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com