SAN DIEGO & WATSONVILLE, Calif.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of Granite Construction Incorporated (NYSE: GVA) filed a class action complaint for alleged violations of the Securities Exchange Act of 1934 between October 26, 2018 and August 1, 2019. Granite operates as an infrastructure contractor and a construction materials producer.
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Granite Construction Incorporated (GVA) Accused of Misleading Shareholders
According to the complaint, in its announcement of its financial results in February 2019, Granite disclosed its involvements in joint ventures, reporting its high revenues from these contracts. However, Granite also recognized that with these joint ventures came risks and uncertainties that were sometimes "outside of [its] control." Despite these risks, Granite assured investors that the aggregate liabilities from 2018 and 2017 were "immaterial." Contrary to assurances, on July 29, 2019, Granite revealed in its 2019 financial results that it was materially impacted with after-tax charges of $104 million to $108 million due to increased project completion costs from its four civil joint venture projects and an unfavorable court ruling from one of the project disputes. On this news, Granite's stock price fell $7.98, nearly 18%, per share. Then, on August 2, 2019, Granite disclosed that the previously mentioned charges resulted in a $114.2 million revenue reduction. On this news, the stock price fell another 8% to close at $31.22 per share and continues to decline.
Granite Construction Incorporated (GVA) Shareholders Have Legal Options
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