SAN DIEGO & NEW PORT RICHEY, Fla.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Welbilt, Inc. (NYSE: WBT) have filed a class action complaint against the company's officers and directors for alleged violations of the Securities Exchange Act of 1934 between February 24, 2017 and November 2, 2018. Welbilt is a commercial foodservice equipment company.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/welbilt-inc/
Welbilt Accused of Implementing Ineffective Internal Control Over Financial Reporting
According to the complaint, for nearly two years, Welbilt represented that its financial statements were accurate and that its internal controls were effective. It therefore came as a surprise to investors when Welbilt admitted that it lacked effective internal control over financial reporting. On November 5, 2018, Welbilt announced that certain of its financial statements should not be relied on because the company incorrectly recorded the tax basis of foreign subsidiaries and the amortization of their intangible assets. As a result, Welbilt had understated its U.S. tax liability. On this news, Welbilt's stock lost more than a quarter of its value to close at $14.26 per share on November 5, 2018, and continues to decline.
Welbilt 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. Sign up for our FREE portfolio monitoring service, Stock Watch.
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