SAN DIEGO & MILWAUKEE--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of REV Group, Inc. (NYSE: REVG) have filed a class action complaint against the company's officers and directors for alleged violations of the Securities Act of 1933 pursuant to the company's January 27, 2017 initial public offering ("IPO") and/or for alleged violations of the Securities Exchange Act of 1934 between January 27, 2017 and June 7, 2018. REV designs, manufactures, and distributes specialty vehicles in the United States, Canada, Europe, Africa, the Middle East, and internationally.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/rev-group-inc-july-2018
REV Group Accused of Failing to Effectively Manage Its Backlog of Vehicles
According to the complaint, REV claimed to deliver high quality products with customized attributes tailored to its customers' product specifications, while reducing costs and shortening delivery lead times. However, REV's margins were being negatively impacted by lower sales of high margin products, including custom fire apparatus, large commercial buses, and Class A RVs. On June 6, 2018, REV announced that its second quarter 2018 results were below expectations, citing cost inflation across many of the commodities and services the company buys and the unavailability of chassis, among other things. REV also lowered its full year 2018 guidance, predicting full year 2018 revenue of $2.4 to $2.6 billion compared to $2.4 to $2.7 billion announced earlier, and net income of $72 to $87 million, compared to $90 to $110 million announced earlier. On this news, REV's stock fell nearly 19% to close at $14.52 per share on June 7, 2018—34% below the company's $22 IPO price.
REV Group 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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