DENVER--(BUSINESS WIRE)--Shuman Glenn & Stecker announces that it is investigating potential shareholder claims against certain officers and directors of Dycom Industries, Inc. (“Dycom” or the “Company”) (NYSE: DY). Dycom provides specialty contracting services throughout the U.S. and Canada.
The Firm’s investigation relates to allegations raised in a class action complaint filed against the Company and certain of its senior officers in the U.S. District Court for the Southern District of Florida. The lawsuit alleges that Dycom and certain of its senior officers violated the federal securities laws by making a series of materially false and misleading statements to shareholders in which they failed to disclose that: (i) Dycom's new large projects were highly dependent on permitting and tactical considerations; (ii) Dycom was facing great uncertainties related to permitting issues; and (iii) those uncertainties would expose Dycom to near-term margin pressure and absorption issues. According to the lawsuit, on May 22, 2018, during a conference call regarding Dycom's financial and operating results for the first fiscal quarter ended April 28, 2018, Dycom's Chairman, President & CEO, Steven E. Nielsen, disclosed that Dycom did not have enough work in hand to absorb the costs it had already incurred associated with its new large projects, mainly because Dycom was facing great uncertainties related to permitting issues. Following this news, the price of Dycom's common stock declined $23.56, or over 20%, to close at $92.64 per share. On August 13, 2018, Dycom issued a press release revising its guidance for the second quarter and six months ended July 28, 2018, and announcing preliminary revenues and results for the second quarter below the previous guidance. Following this news, the price of Dycom common stock dropped $21.62 per share, or over 24%, to close at $68.09 per share. Dycom’s share price has continued to fall and currently trades at approximately $32.80 per share.
If you currently own Dycom common stock and are interested in discussing your rights, or have information relating to this investigation, please contact Brett Stecker toll free at (866) 569-4531 or email Mr. Stecker at firstname.lastname@example.org.
Shuman Glenn & Stecker represents investors throughout the nation, concentrating its practice in stockholder litigation.