Polaris Industries, Inc. (NYSE: PII)
A class action has been filed in the United States District Court for the District of Minnesota on behalf of purchasers of Polaris Industries, Inc. (NYSE: PII) common stock between January 26, 2016 and September 11, 2016 (the “Class Period”).
The complaint charges Polaris and certain of its officers with violations of the Securities Exchange Act of 1934. Polaris, together with its subsidiaries, designs, engineers, manufactures and markets off-road vehicles, snowmobiles, motorcycles and on-road vehicles in the United States, Canada, Western Europe, Australia and Mexico.
On July 23, 2015, Polaris issued a recall for the Company's model-year 2016 Youth RZR off-highway vehicle, citing fire hazards. Three other recalls of the Company's RZR vehicles followed – in October 2015, December 2015, and April 2016 – affecting more than 160,000 RZR vehicles of various model years.
Nevertheless, Polaris consistently advised investors that the Company expected full year 2016 net income to be at least $6.00 per diluted share. On January 26, 2016, Polaris issued a press release reporting full year guidance in the range of $6.20 to $6.80 per diluted share; on April 21, 2016, Polaris issued a press release maintaining the same guidance estimate; and on July 20, 2016, Polaris issued a press release only slightly lowering and narrowing its guidance range to $6.00 to $6.30 per diluted share.
The complaint alleges that throughout the Class Period, defendants made false and misleading statements and/or failed to disclose material adverse information regarding the Company's business and prospects, including that the Company was unable to sufficiently validate the initially identified repair for certain of its recalled RZR vehicles and would ultimately need to implement a more complex and expensive repair solution. As a result, the financial impact of the RZR vehicle recalls was greater than the Company had disclosed, causing the Company’s full year 2016 guidance issued during the Class Period to be overstated. As a consequence of defendants’ false statements and/or omissions, Polaris securities traded at artificially inflated prices during the Class Period, with its stock price reaching close to $100 per share.
Then on September 12, 2016, before the market opened, Polaris issued a press release announcing that the Company was lowering its full year 2016 earnings guidance to the range of $3.30 to $3.80 per diluted share. The Company attributed the lowered guidance to the impact of “additional RZR thermal-related issues” and the Company's inability "to sufficiently validate the initially identified RZR Turbo recall repair, necessitating a more complex and expensive repair solution." On this news, Polaris stock fell $4.05 per share, or 5%, to close at $76.79 per share on September 12, 2016.
If you are a current shareholder and purchased stock between January 26, 2016 and September 11, 2016, 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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