Adient plc (NYSE: ADNT)
Hagens Berman Sobol Shapiro LLP reminds investors in Adient plc (NYSE: ADNT) of the securities class action it has filed in the U.S. District Court for the Southern District of New York and the December 3, 2018 Lead Plaintiff Deadline.
If you purchased or otherwise acquired securities of ADNT between October 31, 2016 and June 11, 2018 and suffered losses contact Hagens Berman Sobol Shapiro LLP. For more infomation contact Reed Kathrein, who is leading the firm's investigation, by calling 510-725-3000 or emailing ADNT@hbsslaw.com.
From the date of the formation of Adient in late October 2016, Defendants touted improvements in the efficiency of Adient’s capital-intensive metals business (a/k/a the SS&M business) as a key driver of its success.
In particular, Defendants repeatedly emphasized to investors that the Company was “solidly on track” to deliver 200 basis point margin expansion by 2020, a feat that depended in large part on operational and financial improvements in its core SS&M business.
However, unknown to investors, Adient’s SS&M business faced significant operational problems such that progress toward achieving the 200 basis point margin expansion was never “on track” during the class period.
When, on May 3, 2018, Defendants announced they recorded a $299 million impairment charge related to the SS&M business and admitted “the 200 basis points of margin expansion . . . is no longer going to be achievable,” the price of Adient shares fell $6.14, or about 10%, to close at $55.84 that day.
Then, on June 11, 2018, Defendants announced (without explanation) the sudden and immediate resignation of Adient’s CEO (R. Bruce McDonald). This news drove the price of Adient shares down $8.88 per share, or over 15%, to close at $48.10 that day.
“We’re focused on investors’ losses, Defendants’ repeated statements they were on track to deliver a 200 basis point margin expansion, when Defendants knew of serious problems in the SS&M business, and why McDonald abruptly left,” said Hagens Berman partner Reed Kathrein.
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