BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Revlon, Inc. (“Revlon” or the “Company”) (NYSE: REV) securities between March 12, 2015 and March 28, 2019, inclusive (the “Class Period”). Revlon investors have 60 days from the date of this notice to file a lead plaintiff motion.
Investors suffering losses on their Revlon investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to email@example.com.
On March 18, 2019, Revlon announced its unaudited fourth quarter and full year 2018 financial results, as well as stating it spotted a "material weakness" in its internal controls over financial reporting for 2018, therefore delaying the filing of the 10-K with the SEC.
On this news, shares of Revlon fell $1.33, or nearly 7%, to close at $18.02 on March 19, 2019, thereby injuring investors.
Then, on March 28, 2019, the Company filed its annual report with the SEC for the period ended December 31, 2018, in which it revealed that, due to ERP-related disruptions, Revlon was unable to fulfill product shipments representing approximately $64 million in net sales and incurred $53.6 million incremental charges to remediate the decline in customer service levels.
On this news, shares of Revlon fell $1.33, or over 6%, to close at $19.38 on March 29, 2019, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that the Company failed to create measures to monitor its enterprise resource planning (“ERP”) system appropriately once implemented; (2) that the Company failed to design, implement, and consistently operate effective process-level controls to ensure that it appropriately (a) recorded and accounted for inventory, accounts receivable, net sales, and cost of goods sold, (b) reconciled balance sheet accounts, (c) reviewed and approved the complete population of manual journal entries, and (d) used complete and accurate information in performing manual control, which constituted a material weakness in its internal controls over financial reporting; (3) that, as a result of the poor preparation and planning of the implementation of the ERP system, the Company was unable to fulfill product shipments of approximately $64 million of net sales and incurred $53.6 million of incremental charges to remediate the decline in customer service levels; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
If you purchased shares of Revlon, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at www.howardsmithlaw.com.
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