AZZ, Inc. (NYSE: AZZ)
A class action lawsuit has been filed in United States District Court for the Northern District of Texas, against AZZ, Inc. (NYSE: AZZ) on behalf of investors who purchased or otherwise acquired the securities of AZZ, Inc. (NYSE: AZZ) between April 22, 2015 to January 8, 2018, (the “Class Period”).
The complaint charges AZZ and certain of its officers with violations of the Securities Exchange Act of 1934. AZZ is a global provider of galvanizing services, welding solutions, specialty electrical equipment and highly engineered services to the power generation, transmission, distribution, refining and industrial markets.
The complaint alleges that during the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding AZZ’s business and financial results. Specifically, according to the complaint, defendants repeatedly misrepresented their financial results, failed to report revenues in compliance with FASB accounting standards, lacked adequate controls over financial reporting and failed to disclose the failure of more than two years of purported efforts to evaluate new accounting standards. As a result of these misrepresentations and/or omissions, the price of AZZ common stock was artificially inflated during the Class Period, reaching a high of $66.43 per share in August 2016.
Then on January 9, 2018, before the market opened, the Company issued a press release and filed a Form 8-K with the SEC regarding the filing of its quarterly report on Form 10-Q. The Company stated that, due to an internal investigation concerning its accounting methodology and practices and the timing of its revenue recognition, the Company would delay the release of its fiscal year 2018 third quarter Form 10-Q and had determined that it should have accounted differently for certain contracts within its Energy Segment. The Company revealed that it expected to report a material weakness in internal control over financial reporting and that its prior financial results should no longer be relied upon. Additionally, the Company disclosed that it “had determined that, in the case of contracts for which revenue was recorded upon contract completion and transfer of title, the Company instead should have applied the percentage of completion method,” and that as an apparent function of multiple years of misreporting its financial results, it “is currently unable to file its Quarterly Report on Form 10-Q for the quarter ended November 30, 2017.” The Company stated that it was “reviewing whether its historical accounting for these contracts differs materially from the percentage-of-completion method and if there are any significant impacts to the Company’s audited consolidated financial statements” for the fiscal years ended February 2015, 2016 and 2017, as well as for the quarters ended May 31 and August 30, 2017. Furthermore, the press release indicated that the Company’s statements concerning the evaluation of new revenue recognition standards over the past two-and-a-half years had been inaccurate. As a result of this news, the Company’s shares fell more than 6%.
If you are a current shareholder and purchased stock between April 22, 2015 to January 8, 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.
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