Lead Plaintiff Deadline is December 3, 2018
NEW YORK, — Wolf Haldenstein Adler Freeman & Herz LLP announces that a federal class action lawsuit has been filed in the United States District Court for the Southern District of New York against Adient plc (“Adient” or the “Company”) (NYSE: ADNT) and certain of its officers, on behalf of shareholders who purchased or otherwise acquired Adient securities between October 31, 2016 and June 11, 2018 (the “Class Period”).
Investors who have incurred losses in the shares of Adient plc are urged to contact the firm immediately at [email protected] or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action on our website, www.whafh.com.
If you have incurred losses in the shares of Adient plc, you may, no later than December 3, 2018, request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights as an investor in Adient plc.
The filed Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements. Defendants repeatedly stressed to investors that it was “solidly on track” to deliver 200-basis-point margin expansion by 2020, which was largely dependent on operational and financial improvements in Adient’s core SS&M business, when in reality, Adient’s core seat structures and mechanisms group (“SS&M”) business faced significant operational problems such that the repeatedly touted 200-basis-point margin expansion was not “on track” at any point during the Class Period.
Consequently, Adient stock traded at artificially inflated prices during the Class Period, reaching a high of $85.93 per share.
On January 17, 2018, defendants revealed that its “near-term results [were] being significantly impacted by SS&M.” Following this news, Adient stock dropped almost 10%.
On January 29, 2018, Adient announced disappointing financial results for first quarter 2018, attributing the poor results to problems in the SS&M business, and said they were still committed to “deliver 200 basis points of consolidated adjusted EBIT margin improvement by the end of 2020″ and were “examining the composition of these 200 basis points . . . .[I]f SS&M . . . is incapable of delivering the 100 to 200 basis points of improvement by 2020, we’ll look to execute other parts of – other things within the rest of our organization to offset the shortfall.” Following this news, Adient stock fell $5.53, to close at $66.77 per share.
On May 3, 2018, Adient revealed a $279 million net impairment charge related to the SS&M business and confessed that “the 200 basis points of margin expansion . . . is no longer going to be achievable.” Adient stock dropped an additional 10%, to close at $55.84 per share.
On June 11, 2018, Adient publicized the sudden and immediate resignation of its CEO and reduced its earnings guidance. Adient stock dropped $8.88 per share to close at $48.10 per share.
Wolf Haldenstein Adler Freeman & Herz LLP has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735, via e-mail at [email protected], or visit our website at www.whafh.com.
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