Shareholder Alert: Robbins LLP Announces Resideo Technologies, Inc. (REZI) Sued for Misleading Shareholders
November 11 2019 - 6:47PM
Business Wire
Shareholder rights law firm Robbins LLP announces that a
purchaser of Resideo Technologies, Inc. (NYSE: REZI) filed a class
action complaint against the company for alleged violations of the
Securities Exchange Act of 1934 between October 29, 2018 and
October 22, 2019. Resideo is a global provider of products,
software, solutions, and technologies that help homeowners stay
connected and in control of their comfort, security, and energy
use.
If you suffered a loss as a result of Resideo's misconduct,
click here.
Resideo (REZI) Accused of Overstating its Financials
According to the complaint, Resideo, a spin-off of Honeywell
International Inc., began trading on the NYSE on October 29, 2018,
opening at $28 per share. During the class period, Resideo
repeatedly assured investors that it was poised to meet its 2018
guidance at the high end of its forecasted range and for 2019 would
achieve 4%+ organic growth and ~13% adjusted EBITDA margin. As late
as August 8, 2019, Resideo stated, "… our Q2 was strong, keeping us
on track to hit our previously provided guidance for 2019." The
complaint contends that these representations were materially false
and misleading because defendants failed to disclose the true
extent of the negative operational effects of the spin-off, which
negatively affected the company's product sales, supply chain, and
gross margins and called into question Resideo's ability to make
its FY19 guidance as claimed. The truth was revealed on October 22,
2019, when Resideo issued preliminary financial results for Q3
2019, announcing it had missed revenue and earnings targets and was
lowering its recently reaffirmed outlook for FY19 by $80 million.
On this news, Resideo's stock declined more than 40% to close at
$9.50 per share on October 23, 2019, and has yet to recover.
Resideo (REZI) Shareholders Have Legal Options
Contact us to learn more: Leo Kandinov (800) 350-6003
lkandinov@robbinsllp.com Shareholder Information Form
Robbins LLP is a nationally recognized leader in shareholder
rights law. The firm represents individual and institutional
investors in shareholder derivative and securities class action
lawsuits, and has helped its clients realize more than $1 billion
of value for themselves and the companies in which they have
invested. Click here to receive free alerts from Stock Watch when
companies engage in wrongdoing.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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version on businesswire.com: https://www.businesswire.com/news/home/20191111005691/en/
Leo Kandinov Robbins Arroyo LLP 5040 Shoreham Place San Diego,
CA 92122 LKandinov@robbinsllp.com (619) 525-3990 or Toll Free (800)
350-6003 www.robbinsllp.com
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