Robbins Arroyo LLP: Adient PLC (ADNT) Misled Shareholders According to a Recently Filed Shareholder Lawsuit
SAN DIEGO & DUBLIN--(BUSINESS WIRE)--Oct 8, 2018--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Adient PLC (NYSE: ADNT) have filed a complaint against the company’s officers and directors for violations of the Securities Exchange Act of 1934 from October 31, 2016 and June 11, 2018. Adient designs and manufactures automotive seating for all vehicle classes and all major original equipment manufacturers.
View this information on the law firm’s Shareholder Rights Blog: https://www.robbinsarroyo.com/adient-plc/
Adient Misled Investors Regarding Its Business Prospects
Adient was formed when Johnson Controls International plc completed its spinoff of its automotive seating and interiors business. According to the complaint, nearly half of Adient’s annual revenues are derived from the sale of metal components used in seat frames produced by its seat structures and mechanisms group (“SS&M”). Since its inception, Adient has touted the efficiency of its SS&M business and asserted it was “solidly on track” to deliver 200 basis point margin expansion by 2020. However, beginning in January 2018, Adient began revealing issues with the SS&M business. First, it disclosed that “near-term results are being significantly impacted by SS&M.” In May, Adient recorded a $299 million impairment charge related to the SS&M business and admitted “the 200 basis points of margin expansion … is no longer going to be achievable.” On June 11, 2018, Adient announced the sudden and immediate resignation of its Chief Executive Officer and slashed its earnings guidance. Each revelation resulted in a decline of Adient stock, which now trades at an all-time low.
Adient Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm’s website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Sign up for our FREE portfolio monitoring service, Stock Watch.
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SOURCE: Robbins Arroyo LLP
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PUB: 10/08/2018 03:34 PM/DISC: 10/08/2018 03:34 PM