Glancy Prongay & Murray LLP Announces the Filing of a Securities Class Action on Behalf of A.O. Smith Corporation Investors
LOS ANGELES--(BUSINESS WIRE)--May 28, 2019--
Glancy Prongay & Murray LLP (“GPM”), a national investors rights law firm, announces that a class action lawsuit has been filed on behalf of investors that acquired A.O. Smith Corporation (“A.O. Smith” or the “Company”) (NYSE: AOS ) securities between July 26, 2016 and May 16, 2019, inclusive (the “Class Period”). A.O. Smith investors have until July 29, 2019 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, at 310-201-9150, Toll-Free at 888-773-9224, or by email to email@example.com, or visit our website at www.glancylaw.com.
On May 16, 2019, J Capital Research published a report raising questions about A.O. Smith’s revenue from China as well as its access to $539 million—or about 84% of the Company’s total cash at year end 2018—sitting in China.
On this news, the Company’s share price fell sharply during intraday trading, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that the Company had undisclosed business connections and entanglements with UTP through which it funneled up to 75% of its China product sales; (2) that the Company had used UTP to engage in channel stuffing by artificially inflating inventories purportedly sold through distributors that were not based on consumer demand, thereby approximately doubling the normal level of inventory at such distributors; (3) that the Company had used its UTP relationship to artificially inflate the sales figures it reported to investors by as much as 8% and to conceal worsening sales trends that the Company was experiencing in China; (4) that the Company’s sales growth had been primarily in lower margin products as its higher priced products were being undercut by competition in “second-tier” Chinese cities, causing the Company to experience significant market pressures; (5) that the Company had increased its cash reserves in China to over $530 million in furtherance of its channel stuffing and sales manipulation scheme, encumbering the Company’s ability to repatriate the cash for use for capital expenditures; and (6) as a result, the Company’s public statements were materially false and misleading at all relevant times.
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If you purchased shares of A.O. Smith during the Class Period you may move the Court no later than July 29, 2019 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067, at 310-201-9150, Toll-Free at 888-773-9224, by email to firstname.lastname@example.org, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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View source version on businesswire.com:https://www.businesswire.com/news/home/20190528005825/en/
CONTACT: Glancy Prongay and Murray LLP, Los Angeles
Lesley Portnoy, 310-201-9150 or 888-773-9224
KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES LEGAL
SOURCE: Glancy Prongay and Murray LLP
Copyright Business Wire 2019.
PUB: 05/28/2019 08:00 PM/DISC: 05/28/2019 08:00 PM