LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz reminds investors of the upcoming May 23, 2023 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who acquired Stanley Black & Decker, Inc. (“Stanley” or the “Company”) (NYSE: SWK) common stock between October 28, 2021 and July 28, 2022, inclusive (the “Class Period”).
If you are a shareholder who suffered a loss, click here to participate.
On April 28, 2022, Stanley disclosed that its net sales for its Tools and Outdoor segment had dropped in the first fiscal quarter of 2022 and that the Company was revising its earnings per share guidance for fiscal year 2022 in response. The Company also revealed that its gross margin for the quarter dropped “610 basis points from prior year as price realization was more than offset primarily by commodity inflation, higher supply chain costs to serve demand and lower volumes.”
On this news, Stanley’s stock price fell $12.01, or 8.6%, to close at $127.13 on April 28, 2022, thereby injuring investors.
Then, on July 28, 2022, before the market opened, Stanley released its second quarter 2022 financial results, disclosing that due to “significantly slower demand,” sales volumes had shrunk by double digits and that the Company’s net income at $87.6 million, compared to $459.5 million the year prior. Stanley also announced that it was cutting its 2022 earnings per share guidance by nearly half.
On this news, Stanley’s stock price fell $18.78, or 16.1%, to close at $98.58 per share on July 28, 2022, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) 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; (2) 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; (3) Stanley’s operations were already showing signs of slowing demand; (4) as a result of reorganization, share repurchasing, and dividend growth, Stanley lacked the cash to react with agility to changes in demand; and (5) 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; and (6) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased or otherwise acquired Stanley common stock during the Class Period, you may move the Court no later than May 23, 2023 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to email@example.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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