Adient plc (Nasdaq: ADNT)
A class action has been commenced in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased or otherwise acquired Adient plc (Nasdaq: ADNT) securities between October 31, 2016 to June 11, 2018, (the “Class Period”).
The complaint alleges that from the date of its formation, Adient and certain of its senior executives highlighted improvements in the efficiency of the Company’s capital-intensive metals business (a/k/a the SS&M business) as a key driver of its success. For example, defendants repeatedly emphasized to investors that the Company was “solidly on track” to deliver 200-basis-point margin expansion by 2020, which was dependent in large part on operational and financial improvements in Adient’s core SS&M business. This statement and others were materially false and misleading, omitted information reasonable investors would consider important, and/or lacked a reasonable basis because, unbeknownst to investors, Adient’s core 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. As a result of defendants’ false statements and/or omissions, Adient securities traded at artificially inflated prices during the Class Period, with its share price reaching a high of $85.93 per share.
On January 17, 2018, defendants disclosed that Adient’s “near-term results [were] being significantly impacted by SS&M.” Adient’s share price fell nearly 10% on this news. On January 29, 2018, defendants announced disappointing financial results for Adient’s first quarter of 2018. Defendants blamed the results on problems in the SS&M business, but stated that 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.” This news drove the price of Adient shares down $5.53 per share, or about 7.6%, to close at $66.77 per share. On May 3, 2018, defendants announced a $279 million net impairment charge related to the SS&M business and admitted that “the 200 basis points of margin expansion . . . is no longer going to be achievable.” On this news, Adient shares fell approximately 10%, to close at $55.84 per share.
Then, on June 11, 2018, Adient announced (without explanation) the sudden and immediate resignation of its CEO and slashed its earnings guidance. On this news, the price of Adient shares fell another $8.88 per share to close at $48.10 per share – a one-day decline of nearly 16% and a decline of 44% from the shares’ Class Period high.
If you are a current shareholder and/or purchased stock during the period between October 31, 2016 to June 11, 2018, and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.