NEW YORK, NY / ACCESSWIRE / August 6, 2018 / Pomerantz LLP announces that a class action lawsuit has been filed against REV Group, Inc. ("REV" or the "Company") (NYSE: REVG) and certain of its officers. The class action, filed in United States District Court, Central District of California, and docketed under 18-cv-06239, is on behalf of a class consisting of all persons other than Defendants who purchased or otherwise acquired REV securities: (1) pursuant and/or traceable to the Company's registration statement and prospectus (collectively, the "Registration Statement") issued in connection with the Company's initial public offering on or about January 27, 2017 (the "IPO" or the "Offering"), seeking to recover compensable damages caused by Defendants' violations of the Securities Act of 1933 ("Securities Act"); and/or (2) between January 27, 2017 and June 7, 2018, inclusive (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased REV securities between January 27, 2017, and June 7, 2018, both dates inclusive, you have until August 7, 2018, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
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REV purportedly designs, manufactures, and distributes specialty vehicles and related aftermarket parts and services. The Company purports to serve a customer base primarily in the United States through three segments: Fire & Emergency, Commercial, and Recreation.
The Complaint alleges that throughout the Class Period and/or in REV's Registration Statement, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose that: (i) REV was experiencing cost inflation across many of the commodities and services it bought; (ii) REV was experiencing difficulty obtaining the chassis necessary for production; (iii) REV's margins were being negatively impacted by a lower sales of high margin products, including custom fire apparatus, large commercial buses, and Class A RVs; (iv) REV did not have "strong visibility into future net sales" to "effectively plan" and manage its backlog of vehicles; (v) REV's manufacturing operations were not operating efficiently or at a low cost to satisfy customer demand; and (vi) as a result of the foregoing, Defendants' statements about REV's business, operations, and prospects, were materially false and/or misleading and/or lacked a reasonable basis.
On June 6, 2018, post-market, REV issued a press release entitled "REV Group, Inc. Reports Fiscal 2018 Second Quarter Results." Therein, the Company disclosed that its second-quarter 2018 results were below expectations due to "cost inflation" across many of the commodities and services the Company buys, the unavailability of chassis, and a negative impact on margins attributed to "lower-than-expected sales of certain higher-content product categories including custom fire apparatus, large commercial buses, and Class A RVs." The Company also lowered its fiscal year 2018 guidance - predicting "[f]ull-year 2018 revenue of $2.4 to $2.6 billion" compared to "$2.4 to $2.7 billion" announced earlier, and "Net Income of $72 to $87 million" compared to "$90 to $110 million" announced earlier. On the same day, June 6, 2018, after announcing its Q2 2018 financial results, the Company issued a press release entitled "REV Group, Inc. Appoints Ian Walsh as Chief Operating Officer." Therein, the Company disclosed that the Company's Chief Operating Officer, Thomas B. Phillips was replaced by Ian Walsh, effective June 1, 2018. The next day, June 7, 2018, the Company held a conference call to discuss its Q2 2018 results. Following these disclosures, REV's share price fell $3.39, or 18.9%, to close at $14.52 on June 7, 2018, on unusually heavy trading volume.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
SOURCE: Pomerantz LLP