NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Adient PLC (“Adient” or the “Company”) (NYSE:ADNT) of the December 3, 2018 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Adient stock or options between October 31, 2016 and June 11, 2018 and would like to discuss your legal rights, click here: www.faruqilaw.com/ADNT. There is no cost or obligation to you.
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The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased Adient securities between October 31, 2016 and June 11, 2018 (the “Class Period”). The case, Barreto v. Adient PLC, et al., No. 18-cv-09116 was filed on October 4, 2018 and has been assigned to Judge Ronnie Abrams.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by misrepresenting the extent to which certain operational problems, especially within its core seat structures and mechanisms (“SS&M”) group, would impact repeatedly stated business goals.
Specifically, on January 17, 2018, during an investor conference, the Company’s executives made the disclosure: “near-term results are being significantly impacted by SS&M.”
On this news, the Company’s share price fell from $82.18 per share on January 16, 2018 to $74.15 per share on January 18, 2018—a $8.03 or 9.77% drop.
Then, during the January 29, 2018 earnings conference call with investors, Defendants announced disappointing financial results for Adient’s first quarter of 2018, blaming the outcome on problems in the SS&M business, but remaining committed to the goal of delivering “200 basis points of consolidated adjusted EBIT margin improvement by the end of 2020.”
On this news, the Company’s share price fell from $72.30 per share on January 26, 2018 to $66.77 per share on January 29, 2018—a $5.53 or 7.65% drop.
Then, on May 3, 2018, Defendants announced they recorded a $299 million impairment charge related to the SS&M business and admitted “the 200 basis points of margin expansion . . . is no longer going to be achievable.”
On this news, the Company’s share price fell from $61.98 per share on May 2, 2018 to $55.84 per share on May 3, 2018—a $6.14 or 9.91% drop.
Then, on June 11, 2018, Adient announced (without explanation) the sudden and immediate resignation of CEO McDonald and slashed its earnings guidance.
On this news, the Company’s share price fell from $56.98 per share on June 8, 2018 to $48.10 per share on June 11, 2018—a $8.88 or 15.58% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Adient’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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