Robbins Arroyo LLP: REV Group, Inc. (REVG) IPO Documents Allegedly Contained Untrue Statements
SAN DIEGO & MILWAUKEE--(BUSINESS WIRE)--Sep 21, 2018--Shareholder rights law firm Robbins Arroyo LLP announces that on June 26, 2018, purchasers of REV Group, Inc. (NYSE: REVG) filed a class action complaint against the company’s officers and directors for alleged violations of the Securities Act of 1933 pursuant to the company’s January 27, 2017 initial public offering (“IPO”). REV designs, manufactures, and distributes specialty vehicles in the United States, Canada, Europe, Africa, the Middle East, and internationally.
View this information on the law firm’s Shareholder Rights Blog: https://www.robbinsarroyo.com/
The Complaint Alleges that REV Group Misstated Financials in its Offering Documents
According to the complaint, REV touted that it had achieved sustained growth across its operating metrics and that its ability to control costs and its unique visibility into future revenue streams were key competitive advantages that would allow it to grow margins and provide investors with predictable financial results. The complaint alleges that REV failed to disclose that its pre-IPO acquisitions resulted in an organizational structure that prevented it from operating efficiently and controlling costs. The complaint also alleges that REV did not have leverage over its suppliers, subjecting it to sudden and substantial cost increases on critical parts and materials.
REV’s September 5, 2018 release of its 2018 third quarter results further rocked the company when it reduced its full year 2018 outlook and revealed “certain business units … have underperformed.” The company also revealed that it encountered production inefficiencies, which “delayed product shipments beyond the quarter within all three of [its] segments.”
REV Group 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.
Attorney Advertising. Past results do not guarantee a similar outcome.
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SOURCE: Robbins Arroyo LLP
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PUB: 09/21/2018 08:25 PM/DISC: 09/21/2018 08:25 PM