VRT Shareholder Class Action: Robbins LLP Reminds Investors of Class Action Against Vertiv Holdings Co. (VRT)

SAN DIEGO--(BUSINESS WIRE)--The Class: Shareholder rights law firm Robbins LLP reminds investors that a shareholder filed a class action on behalf of persons and entities that purchased or otherwise acquired Vertiv Holdings Co. (NYSE: VRT) securities between April 28, 2021 and February 23, 2022, for violations of the Securities Exchange Act of 1934. Vertiv purports to be a “global leader in the design, manufacturing and servicing of critical digital infrastructure technology that powers, cools, deploys, secures and maintains electronics that process, store and transmit data.”

If you would like more information about Vertiv Holdings Co.'s misconduct, click here.

What is this Case About: Vertiv Holdings Co.'s (VRT) Failed to Disclose that it Would be Impacted by Inflation and Supply Chain Restraints

According to the complaint, throughout the class period, defendants noted strong net sales growth and increased profits. On April 28, 2021, the Company increased its full year 2021 adjusted operating profit guidance, which purportedly included "the expected negative net impact in the remainder of the year of higher commodity and freight costs." On October 27, 2021, the Company reported an increase in net sales growth. Though supply chain issues continued, the Company acknowledged, "[c]ost containment actions have been accelerated heading into our fourth quarter to mitigate impacts from increased supply chain disruptions."

These statements proved to be false. Defendants failed to disclose to investors that the Company could not adequately respond to supply chain issues and inflation by increasing its prices, and that as a result of increasing costs, Vertiv's earnings would be adversely impacted.

On February 23, 2022, Vertiv reported disappointing financial results. Vertiv's CEO attributed the poor results to management "consistently underestimate[ing] inflation and supply chain constraints for both timing and degree, which dictated a tepid 2021 pricing response." On this news, the Company's stock price fell $7.19, or 37%, to close at $12.38 per share on February 23, 2022.

Next Steps: If you acquired shares of Vertiv Holdings Co. (VRT) between April 28, 2021 and February 23, 2022, you have until May 23, 2022, to ask the court to appoint you lead plaintiff for the class. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.

Contact us to learn more:

Aaron Dumas
[phone]
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Shareholder Information Form

About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against Vertiv Holdings Co. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.

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