Shareholder Alert: Robbins Arroyo LLP Announces Textron Inc. (TXT) Sued for Misleading Shareholders

SAN DIEGO & PROVIDENCE, R.I.--()--Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of Textron Inc. (NYSE: TXT) filed a class action complaint for alleged violations of the Securities Exchange Act of 1934 between January 31, 2018 and October 17, 2018. Textron is a global manufacturer and distributor of small aircrafts and recreational vehicles.

If you suffered a loss as a result of Textron's misconduct, click here.

Textron Inc. (TXT) Accused of Misleading Shareholders

According to the complaint, in March 2017, Textron acquired Arctic Cat Inc. for $316 million on the notion that this acquisition would give Textron "a deeper product line for customers, greater potential for innovation, and introduces new sales opportunities for [Textron's] worldwide dealer network." Textron continued to tout this potential for growth throughout the class period, but failed to disclose that end market sales of Arctic Cat products were actually slowing, creating a massive amount of old Arctic Cat inventory on dealers' floors. As a result of this inventory back-up, Textron provided significant price discounts, which negatively impacted Textron's earnings. Then, on October 18, 2018, Textron reported weak third quarter 2018 earnings and cut its full-year 2018 forecast, attributing the poor financial results to the heavy discounts it issued in an effort to clear out old inventory. On this news, Textron stock fell $7.29, or 11.25%, to close at $57.49 and erasing $1.8 billion from its market capitalization. The stock value has yet to recover and continues to decline.

Textron Inc. (TXT) Shareholders Have Legal Options

Contact us to learn more:
Leo Kandinov
(800) 350-6003
lkandinov@robbinsarroyo.com
Shareholder Information Form

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. Click Here to receive free alerts from Stock Watch when companies engage in wrongdoing.

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Contacts

Leo Kandinov
Robbins Arroyo LLP
5040 Shoreham Place
San Diego, CA 92122
lkandinov@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com

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Contacts

Leo Kandinov
Robbins Arroyo LLP
5040 Shoreham Place
San Diego, CA 92122
lkandinov@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com