Press release content from Globe Newswire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Globe Newswire
Press release content from Globe Newswire. The AP news staff was not involved in its creation.

SHAREHOLDER ALERT - BrightView Holdings, Inc. (BV) Bronstein, Gewirtz & Grossman, LLC Announces Class Action and Lead Plaintiff Deadline: June 14, 2019

May 20, 2019

NEW YORK, May 20, 2019 (GLOBE NEWSWIRE) -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against BrightView Holdings, Inc. (“BrightView” or the “Company”) (NYSE: BV) and certain of its officers, on behalf of shareholders who purchased or otherwise acquired BrightView securities pursuant and/or traceable to the company’s initial public offering completed on or around July 2, 2018 (the “IPO” or the “Offering”). Such investors are encouraged to join this case by visiting the firm’s site: www.bgandg.com/bv.

This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1933.

BrightView was founded in 1939 and is headquartered in Plymouth Meeting, Pennsylvania. The Company provides commercial landscaping services in the United States, operating through two segments, Maintenance Services and Development Services.

The complaint alleges that the defendants made materially false and misleading statements in the Offering Documents concerning the Company’s business, operational and compliance policies. Specifically, it is alleged that Defendants made false and/or misleading statements and/or failed to disclose that: (i) a material portion of BrightView’s contracts were underperforming and/or represented undesirable costs to the Company; (ii) as a result of the foregoing, BrightView would implement a ″managed exit″ strategy to end its low margin and non-profitable contracts with customers; (iii) this ″managed exit″ strategy would negatively impact BrightView’s future revenue throughout 2018, and would continue to do so well into fiscal year 2019; and (iv) as a result, the Offering Documents were materially false and/or misleading and failed to state information required to be stated therein.

On August 8, 2018, after market-close, BrightView issued a press release announcing its financial and operating results for the third quarter of 2018, ended June 30, 2018. Despite reporting ″strong third quarter results″ and ″record revenues,″ the Company reported that ″[r]evenues from the Development Services segment declined 5.7%″ compared to the prior year ″due to winding down production on certain large projects that reached substantial completion during the quarter, coupled with the timing of commencing work on new projects.″

On this news, BrightView’s common stock price fell $2.30 per share, or over 10%, to close at $19.90 per share on August 9, 2018, on exceptionally heavy trading volume. This represented a decrease of nearly 10% from the IPO price. BrightView’s common stock price continued to fall by an additional $3.53 per share over the following three trading sessions to close at a low of $16.37 per share on August 14, 2018, or approximately 25.6% below the IPO price.

The extent of the Company’s ″underperforming contracts″ was further revealed on November 27, 2018, when BrightView issued a press release reporting its financial and operating results for the fourth quarter and fiscal year 2018. Therein, the Company revealed that for the fourth quarter and full year, its Managed Exit strategy offset its Maintenance Services revenue by 2.6% and 1.6%, respectively. Additionally, BrightView disclosed that its Managed Exit strategy would result in a decline in revenue of $15 to $25 million over the course of full year fiscal 2019.

On November 28, 2018, BrightView also hosted a conference call with investors and analysts to discuss the Company’s financial and operating results. On that call, BrightView’s Chief Executive Officer (″CEO″) Andrew V. Masterman disclosed that certain of the Company’s contracts not only had ″no margin″, but in fact were ″under water″.

Then, on February 7, 2019, BrightView issued a press release announcing its financial and operating results for the first quarter 2019, ended December 31, 2018. In the press release, CEO Masterman attributed the Company’s disappointing financial and operating results to, interalia, the Company’s ″strategic Managed Exit initiative and other operating conditions that we highlighted in our guidance on our November 2018 earnings conference call, as well as a slow start to the season for our snow removal services.″ Additionally, in the Company’s quarterly report filed with the SEC that same day, the Company advised investors that the underperforming contracts part of the Managed Exit strategy accounted for a year-over-year quarterly decline of $10.8 million in landscape services revenues.

On this news, BrightView’s common stock price declined $1.51 per share, or over 10%, to close at $13.23 per share on February 7, 2019, representing a decline of nearly 40% from the IPO price. The price of BrightView’s common stock continued to fall by an additional $0.48 per share, or 3.6%, to close at a low of $12.75 per share on February 8, 2019, representing a total decline of 42% from the IPO price.

If you wish to review a copy of the Complaint you can visit the firm’s site: www.bgandg.com/bv or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in BrightView you have until June 14, 2019 to request that the Court appoint you as lead plaintiff. A lead plaintiff acts on behalf of all other class members in directing the litigation. The lead plaintiff can select a law firm of its choice. Your ability to share in any recovery doesn’t require that you serve as a lead plaintiff.

Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm’s expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.

Contact:Bronstein, Gewirtz & Grossman, LLC Peretz Bronstein or Yael Hurwitz 212-697-6484 | info@bgandg.com

All contents © copyright 2019 The Associated Press.All rights reserved.