SAN DIEGO & BOCA RATON, Fla.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of ADT, Inc. (NYSE: ADT) have filed a class action complaint against the company's officers and directors for alleged violations of the Securities Act of 1933 pursuant to ADT's January 2018 initial public offering ("IPO"). ADT provides security and automation solutions for homes and businesses in the United States and Canada.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/adt-inc
ADT Accused of Providing Misleading Financial Information in Its Offering Documents
According to the complaint, in January 2018, ADT held its IPO, issuing approximately 105 million shares of ADT stock and raising more than $1.4 billion in gross proceeds. ADT's registration statement portrayed the company has having undergone a "transformation" and touted that the new management team had reduced customer acquisition costs and improved profitability, which had already led to improved financial results. In reality, ADT was experiencing dramatically worse financial results—the company suffered a net loss of over $300 million, a quarterly loss of $0.06 EPS, and increasing year-over-year losses of $0.35 diluted EPS for FY 2017—down 75% from 2016. In addition to providing misleading financial information, ADT failed to provide important metrics in order to prevent investor and market analysts from accurately appraising the state of ADT's business. Since the truth about ADT's financial condition became known, ADT shares currently trade below $9 per share—an over 37% decline from the offering price.
ADT Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid 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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