Robbins Arroyo LLP: REV Group, Inc. (REVG) Misled Shareholders According to a Recently Filed Class Action
SAN DIEGO & MILWAUKEE--(BUSINESS WIRE)--Jun 12, 2018--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of REV Group, Inc. (NYSE: REVG) have 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: www.robbinsarroyo.com/rev-group-inc
REV Group Accused of Overstating the Company’s Ability to Predict Business
According to the complaint, in the company’s registration statement, REV claimed to carry a high quality backlog that enabled the company to have strong visibility into future net sales, in turn allowing it to effectively plan and predict its business. However, REV facilities were not operating efficiently or at a low cost to satisfy customer demand. On April 10, 2018, REV announced that Tom Phillips would rejoin the company as Chief Operating Officer (“COO”) and assume many of the duties of Marcus Berto, Executive Vice President, who was terminated in March 2018 due to conduct that was inconsistent with the company’s policies. Then, on June 6, 2018, REV announced that Ian Walsh had been appointed COO and would replace Tom Phillips. That same day, REV admitted that its earnings were adversely impacted by near term commodity price inflation and supply chain constraints. On this news, REV’s stock fell nearly 19% to close at $14.52 per share on June 7, 2018—34% below the company’s $22 IPO price.
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.
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View source version on businesswire.com:https://www.businesswire.com/news/home/20180612006552/en/
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SOURCE: Robbins Arroyo LLP
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PUB: 06/12/2018 06:38 PM/DISC: 06/12/2018 06:38 PM