NEW YORK, NY / ACCESSWIRE / September 26, 2017 / Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in TransDigm Group Incorporated (''TransDigm'' or the ''Company'') (NYSE: TDG) of the October 10, 2017 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in TransDigm stock or options between May 10, 2016 and March 21, 2017 and would like to discuss your legal rights, click here: www.faruqilaw.com/TDG. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to [email protected].
The lawsuit has been filed in the U.S. District Court for the Northern District of Ohio on behalf of all those who purchased TransDigm securities between May 10, 2016 and March 21, 2017 (the ''Class Period''). The case, City of Warren Police and Fire Retirement System v. TransDigm Group Incorporated et al, No. 1:17-cv-01958 was filed on September 18, 2017, and has been assigned to Judge Christopher A. Boyko.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) TransDigm used shell distributors to make noncompetitive government bids seem competitive; (2) the Company used monopolistic tactics to unreasonably hike the prices of its proprietary products; (3) the Company attempted to evade government scrutiny of its cost structure; and (4) the Company's growth and profitability, being artificially inflated as a result of its illicit business practices, were unsustainable.
Specifically, on January 20, 2017, Citron Research, a well-known short seller, issued a research report (the ''Report'') alleging TransDigm of being the ''Valeant of the aerospace industry.'' The Report revealed, among other things, that the Company uses multiple shell distributors that have no pricing power to avoid detection by making government bids seem competitive. Further, the Report emphasized that TransDigm's growth was driven, in large part, by rampant acquisitions and extreme debt levels.
On this news, TransDigm's share price fell from $251.76 per share on January 19, 2017 to a closing price of $226.90 on January 20, 2017 - a $24.86 or a 9.87% drop.
Then, on March 9, 2017, Citron Research published a second report alleging that TransDigm's subsidiaries failed to disclose that they were owned by the Company when bidding for Pentagon contracts, in violation of several laws and regulations.
Following this report, TransDigm's share price fell from $241.63 per share on March 9, 2017 to a closing price of $231.37 on March 10, 2017 - a $10.26 or a 4.25% drop.
Finally, on March 21, 2017, the office of Congressman Ro Khanna announced that it had sent a letter to the Inspector General for the Department of Defense requesting an investigation into TransDigm, relating to the Company's allegedly anti-competitive business practices.
After this announcement, TransDigm's share price fell from $237.94 per share on March 20, 2017, to a closing price of $214.85 on March 22, 2017 - a $23.09 or a 9.7% drop over two trading days.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding TransDigm's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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SOURCE: Faruqi & Faruqi, LLP