SAN FRANCISCO, Oct. 10, 2018 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP notifies investors in Adient plc (: ADNT) of the securities class action it has filed in the United States District Court for the Southern District of New York. If you purchased or otherwise acquired Adient securities between October 31, 2016 and June 11, 2018 (the “class period”) and suffered losses contact Hagens Berman Sobol Shapiro LLP. For more information visit:
https://www.hbsslaw.com/cases/ADNT
or contact Reed Kathrein, who is leading the firm’s investigation, by calling 510-725-3000 or emailing
From the date of the formation of Adient in late October 2016, Defendants touted improvements in the efficiency of Adient’s capital-intensive metals business (a/k/a the SS&M business) as a key driver of its success.
In particular, Defendants repeatedly emphasized to investors that the Company was “solidly on track” to deliver 200 basis point margin expansion by 2020, a feat that depended in large part on operational and financial improvements in its core SS&M business.
However, unknown to investors, Adient’s SS&M business faced significant operational problems such that progress toward achieving the 200 basis point margin expansion was never “on track” during the class period.
When, on May 3, 2018, Defendants announced they recorded a $299 million impairment charge related to the SS&M business and admitted “the 200 basis points of margin expansion . . . is no longer going to be achievable,” the price of Adient shares fell $6.14, or about 10%, to close at $55.84 that day.
Then, on June 11, 2018, Defendants announced (without explanation) the sudden and immediate resignation of Adient’s CEO (R. Bruce McDonald). This news drove the price of Adient shares down $8.88 per share, or over 15%, to close at $48.10 that day.
“We’re focused on investors’ losses, Defendants’ repeated statements they were on track to deliver a 200 basis point margin expansion, when Defendants knew of serious problems in the SS&M business, and why McDonald abruptly left,” said Hagens Berman partner Reed Kathrein.
Whistleblowers: Persons with non-public information regarding Adient should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email [email protected].
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Contact:
Reed Kathrein, 510-725-3000
