NEW YORK--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of Connecticut on behalf of those who acquired Stanley Black & Decker, Inc. (“Stanley” or the “Company”) (NYSE: SWK) securities during the period from October 28, 2021 through July 28, 2022 (the “Class Period”). Investors have until May 23, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Stanley is a diversified global provider of hand tools, power tools and related accessories, mechanical access and electronic security solutions, healthcare solutions, engineered fastening systems, and more.
On the morning of April 28, 2022, Stanley issued a press release the morning of April 28, 2022, stating that “[n]et sales for the quarter were . . . partially offset by lower volume (-6%)[.]” Contemporaneously, Stanley also filed a Form 10-Q with the SEC detailing the Company’s financial and operating results for the first fiscal quarter ended April 2, 2022. Stanley disclosed in the 1Q Fiscal 2022 Form 10-Q that net sales for the Company’s first quarter were “partially offset by a 6% . . . decrease from volume,” indicating that demand was slowing. On this news, the price of Stanley shares declined by $12.01 per share, or approximately 8.63%, from $139.14 per share to close at $127.13 on April 28, 2022.
On July 28, 2022, Stanley issued a press release reporting the Company’s financial and operational results for the second quarter 2022 ended July 2, 2022. The press release stated, in pertinent part, that “the macroeconomic environment—including inflation, rising interest rates and significantly slower demand in late May and June—drove the majority of the challenges we faced this quarter . . . the softening of the demand environment accelerated rapidly during the last portion of the quarter,” and that “[n]et sales for the quarter were . . . partially offset by lower volume (-13%).” On this news, the price of Stanley shares declined by $18.87 per share, or approximately 16.07%, from $117.45 per share to close at $98.58 on July 28, 2022.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) rising interest rates, inflation, and trends in returning to work away from home were in fact quickly eroding then-heightened demand for Stanley’s tools and outdoor products; (ii) the heightened, extraordinary demand Stanley had enjoyed as a result of the COVID-19 pandemic in 2021 into 2022 was returning to 2019 pre-pandemic levels; (iii) Stanley’s operations were already showing signs of slowing demand; (iv) as a result of reorganization, share repurchasing, and dividend growth, Stanley lacked the cash to react with agility to changes in demand; and (v) as a result of Stanley’s inability to react to a sharp decline in demand, the Company’s results and metrics, particularly sales volume, were severely negatively impacted.
If you purchased or otherwise acquired Stanley securities, have information, or would like to learn more about this lawsuit and how it might affect your rights, please contact Thomas W. Elrod of Kirby McInerney LLP by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.
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