SAN DIEGO--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP announces that a class action lawsuit was filed on behalf of purchasers of Textron (NYSE:TXT) common stock between January 31, 2018 and October 17, 2018 (the “Class Period”) in the U.S. District Court for the Southern District of New York. The case is captioned Building Trades Pension Fund of Western Pennsylvania v. Textron Inc., No. 1:19-cv-07881, and is assigned to Judge Denise L. Cote. The Textron class action lawsuit charges Textron and two of its executive officers with violations of the Securities Exchange Act of 1934.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Textron common stock during the Class Period to seek appointment as lead plaintiff in the Textron class action lawsuit. A lead plaintiff acts on behalf of all other class members in directing the Textron class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Textron class action lawsuit. An investor’s ability to share in any potential future recovery of the Textron class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Textron class action lawsuit or have questions concerning your rights regarding the Textron class action lawsuit, please visit our website by clicking here or contact counsel Brian Cochran at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. Lead plaintiff motions for the Textron class action lawsuit must be filed with the court no later than October 21, 2019.
Textron is a global manufacturer and distributor of small aircrafts and recreational vehicles. On March 6, 2017, Textron expanded its recreational vehicle business through its $316 million acquisition of Arctic Cat Inc. Upon the completion of this transaction, Arctic Cat became an indirect wholly-owned subsidiary of Textron. Arctic Cat designs and manufactures a variety of recreational vehicles, including all-terrain vehicles and snowmobiles. Arctic Cat revenues are generated through sales to independent dealers.
The Textron class action lawsuit alleges that throughout the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding Textron’s business and prospects. Specifically, contrary to defendants’ repeated representations touting Arctic Cat as an important growth business for Textron and their reassurances to investors about dealer demand, end-market sales, and earnings prospects for Arctic Cat products, end-market sales of Arctic Cat products were slowing, resulting in a massive glut of old Arctic Cat inventory on dealers’ floors. As a consequence, in order to clear out this excess Arctic Cat inventory, Textron would be required to provide significant price discounts, which would negatively impact its earnings. As a result of defendants’ false statements and omissions, the price of Textron common stock was artificially inflated to a high of more than $72 per share during the Class Period.
The complaint alleges that the truth about Arctic Cat’s inventory problems was revealed on October 18, 2018, when Textron reported weak third quarter 2018 earnings and cut its full-year 2018 forecast. Textron blamed the shortfall on heavy discounts issued by Textron to clear out old Arctic Cat inventory. Analysts immediately lowered their price targets on Textron stock, citing the inventory concerns at Arctic Cat. On this news, the price of Textron stock declined more than 11% to close at $57.49 per share on October 18, 2018.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For six consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations, and the media as leading lawyers in the industry. Please visit http://www.rgrdlaw.com for more information.