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SAN FRANCISCO, Sept. 25, 2019 (GLOBE NEWSWIRE) -- Hagens Berman notifies TXT investors of a securities fraud lawsuit filed against Textron Inc. (TXT).
CLASS PERIOD: Jan. 31, 2018 – Oct. 17, 2018
LEAD PLAINTIFF DEADLINE: Oct. 21, 2019
Call: Reed Kathrein, who is leading the firm’s investigation: 510-725-3000
TXT Securities Class Action
According to the Complaint, Textron misleadingly touted Arctic Cat Inc., a company Textron acquired in March 2017, as an important growth business for Textron and reassured investors about dealer demand, end-market sales and earnings prospects for its Arctic Cat products.
The Complaint alleges Textron concealed (1) end-market sales of Arctic Cat products were slowing, resulting in a massive glut of old Arctic Cat inventory on dealers’ floors, and (2) Textron provided significant price discounts to clear the old inventory, negatively impacting Textron’s earnings.
On October 18, 2018, Textron announced weak 3Q 2018 earnings, cut the full-year 2018 earnings forecast, and blamed heavy discounts Textron issued to clearing out old inventory. This news caused Textron shares to plummet, erasing $1.8 billion in market capitalization.
“We’re focused on investors’ losses and whether Textron misled investors about Arctic Cat’s growth prospects,” said Hagens Berman partner Reed Kathrein.
Whistleblowers: Persons with non-public information regarding Textron should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email TXT@hbsslaw.com.
About Hagens Berman
Hagens Berman is a national law firm with nine offices in eight cities around the country and eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Reed Kathrein, 510-725-3000