A lawsuit was filed on behalf of investors in Adient plc (NYSE: ADNT) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 10/25/2018 -- An investor, who purchased shares of Adient plc (NYSE: ADNT), filed a lawsuit over alleged violations of Federal Securities Laws by Adient.
Investors who purchased shares of Adient plc (NYSE: ADNT), have certain options and for certain investors are short and strict deadlines running. Deadline: December 3, 2018. NYSE: ADNT investors should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleges on behalf of purchasers of Adient plc (NYSE: ADNT) common shares between October 31, 2016 and June 11, 2018, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that from the date of its formation, Adient and certain of its senior executives highlighted improvements in the efficiency of the Company's capital-intensive metals business (a/k/a the SS&M business) as a key driver of its success. For example, defendants repeatedly emphasized to investors that the Company was "solidly on track" to deliver 200-basis-point margin expansion by 2020, which was dependent in large part on operational and financial improvements in Adient's core SS&M business. This statement and others were materially false and misleading, omitted information reasonable investors would consider important, and/or lacked a reasonable basis because, unbeknownst to investors, Adient's core SS&M business faced significant operational problems such that the repeatedly touted 200-basis-point margin expansion was not "on track" at any point between October 31, 2016 and June 11, 2018, and that as a result of defendants' false statements and/or omissions, Adient securities traded at artificially inflated prices between October 31, 2016 and June 11, 2018, with its share price reaching a high of $85.93 per share.
The plaintiff alleges that the defendants blamed the results on problems in the SS&M business, but stated that they were still committed to "deliver 200 basis points of consolidated adjusted EBIT margin improvement by the end of 2020" and were "examining the composition of these 200 basis points . . . . [I]f SS&M . . . is incapable of delivering the 100 to 200 basis points of improvement by 2020, we'll look to execute other parts of – other things within the rest of our organization to offset the shortfall." This news drove the price of Adient shares down $5.53 per share, or about 7.6%, to close at $66.77 per share. On May 3, 2018, defendants announced a $279 million net impairment charge related to the SS&M business and admitted that "the 200 basis points of margin expansion . . . is no longer going to be achievable." On this news, Adient shares fell approximately 10%, to close at $55.84 per share.
On January 17, 2018, defendants disclosed that Adient's "near-term results [were] being significantly impacted by SS&M." Adient's share price fell nearly 10% on this news. On January 29, 2018, Adient plc announced its financial results for Adient's first quarter of 2018.
On June 11, 2018, Adient announced that Chief Executive Officer R. Bruce McDonald is stepping down, and the company slashed its profit forecast for the year. Following this news, shares of Adient plunged more than 17% in early market trading.
Those who purchased shares of Adient plc (NYSE: ADNT) have certain options and should contact the Shareholders Foundation.
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About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
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