NEW YORK, NY / ACCESSWIRE / July 15, 2019 / Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in A.O. Smith Corporation ("A.O. Smith" or the "Company")(NYSE:AOS) of the July 29, 2019 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 A.O. Smith stock or options between July 26, 2016 and May 16, 2019 and would like to discuss your legal rights, click here: www.faruqilaw.com/AOS. 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].
CONTACT:
FARUQI & FARUQI, LLP
685 Third Avenue, 26th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
[email protected]
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Eastern District of Wisconsin on behalf of all those who purchased A.O. Smith common stock between July 26, 2016 and May 16, 2019 (the "Class Period"). The case, Bleier v. AO Smith Corporation et al., No. 19-cv-00786 was filed on May 28, 2019, and has been assigned to Judge Lynn Adelman.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that the Company had used a distribution partner, Jiangsu UTP Supply Chain ("UTP"), to artificially inflate the Company's sales and gross margins in the important Chinese market.
On May 16, 2019, J Capital Research USA LLC published a report alleging that A.O. Smith used several manipulative practices to show higher sales and earnings in its China operations. The report stated that A.O. Smith had undisclosed business relationships and entanglements with UTP, accounting for up to 75% of the Company's product sales in China. The report also questioned whether A.O. Smith had unencumbered access to more than $530 million in cash on hand it claimed to hold in China.
On this news, A.O. Smith's share price fell from $48.14 per share on May 15, 2019 to a closing price of $45.12 on May 16, 2019: a $3.02 or a 6.27% drop.
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 A.O. Smith's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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SOURCE: Faruqi & Faruqi, LLP