Under the Symbol:
Textron Shareholder Alert: Lawsuit Filed On Behalf Of TXT Investors
Wednesday, October 9, 2019 4:45 PM
BOSTON, MA / ACCESSWIRE / October 9, 2019 / Textron shareholders are alerted that a lawsuit has been filed against Textron Inc. ("Textron" or the "Company") (NYSE:TXT) alleging that Textron violated the federal securities laws. Investors who purchased Textron stock between January 31, 2018 and October 17, 2018, and are interested in participating the lawsuit as a lead plaintiff, are encouraged to contact the Thornton Law Firm and learn more about the case at www.tenlaw.com/cases/Textron. Investors may also email the firm to obtain information at [email protected] or call (617) 531-3917.
FOR MORE INFORMATION, PLEASE VISIT: www.tenlaw.com/cases/Textron
Textron is a global manufacturer and distributor of small aircraft and recreational vehicles. On March 6, 2017, Textron expanded its recreational vehicle business by acquiring Arctic Cat Inc. ("Arctic Cat"). Throughout the Class Period, Textron allegedly repeatedly touted Arctic Cat as an important growth business for the Company, reassuring investors about dealer demand, end-market sales and earnings prospects for its Arctic Cat products.
Notwithstanding these positive representations to the market, Defendants allegedly failed to disclose that: (1) end-market sales of Arctic Cat products were slowing, resulting in a massive glut of old Arctic Cat inventory on dealers' floors; (2) in order to clear out this old inventory, the Company provided significant price discounts, which negatively impacted Textron's earnings; (3) as a result, Textron's positive statements about Arctic Cat's business, operations, and prospects were false and misleading.
The truth about Arctic Cat's inventory problems was revealed on October 18, 2018, when Textron reported weak third quarter 2018 earnings and cut its full-year 2018 forecast. The Company blamed the shortfall on heavy discounts issued by Textron to clear out old Arctic Cat inventory. Analysts immediately lowered their price targets on Textron stock citing the inventory concerns at Arctic Cat. On this news, Textron's stock fell $7.29 or 11.25 percent, to close at $57.49 on October 18, 2018, erasing $1.8 billion from its market capitalization.
Investors who purchased TXT securities between January 31, 2018 and October 17, 2018 are encouraged to contact the Thornton Law Firm's shareholder rights team at www.tenlaw.com/cases/Textron. Interested Textron shareholders have until October 21, 2019 to apply to be lead plaintiff. The class has not yet been certified. Until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
The Thornton Law Firm's securities attorneys are highly experienced in representing individual shareholders and institutional investors in recovering damages caused by violations of the securities laws. Its attorneys have established track records litigating securities cases in courts throughout the country and recovering losses on behalf of shareholders. This may be considered Attorney Advertising in some jurisdictions. Prior results do not guarantee or predict a similar outcome with respect to any future matter.
SOURCE: Thornton Law Firm LLP