NEW YORK, Nov. 12 2019 /PRNewswire/ -- Prominent
investor rights law firm Bernstein Litowitz Berger & Grossmann
LLP ("BLB&G") today filed a securities fraud class action
lawsuit against Resideo Technologies, Inc. ("Resideo" or the
"Company") (NYSE: REZI) on behalf of investors who purchased
Resideo common stock between October 10,
2018 and October 22, 2019,
inclusive (the "Class Period"). The case, captioned Hollywood
Firefighters' Pension Fund v. Resideo Technologies, Inc., No.
19-cv-02889, is pending in the U.S. District Court for the District
of Minnesota.
The complaint filed by BLB&G on behalf of Resideo investors
alleges that the Company and certain of its senior executives
(collectively, "Defendants") violated federal securities laws, and
is based on an extensive proprietary investigation and a careful
evaluation of the merits of this case. A copy of the complaint is
available on BLB&G's website by clicking here. Investors who
purchased Resideo common stock during the Class Period may, no
later than January 7, 2020, seek to
be appointed Lead Plaintiff for the Class.
Resideo's Alleged Fraud
Resideo is a manufacturer of home automation products,
including, among other things, smart thermostats and security
cameras. The Company was formed through a spin-off from parent
Honeywell International, Inc. ("Honeywell"). Prior to the spin-off,
the business that was to become Resideo comprised Honeywell's Home
product portfolio and ADI Global Distribution business.
Based on BLB&G's investigation, the action alleges that,
throughout the Class Period, Resideo made multiple misleading
public statements, including telling investors that: Resideo would
be a market leader; there was strong demand for the Company's
"connected" home products; the Company would remain competitive in
the sale of nonconnected products; and Resideo was actively
resolving supply-chain problems.
In reality, after the spinoff Resideo continued to compete
directly with its former parent, Honeywell, in the sale of comfort
products, including thermostats. Honeywell maintained an inventory
of a key product line, and cannibalized Resideo's business. Resideo
focused on sales of newer model thermostats despite the popularity
of the older model still being sold by Honeywell. In addition,
Resideo's high-margin Residential Thermal Solutions ("RTS")
business, which sells components to manufacturers of heating
systems, faced supply chain issues that were driven by
industry-wide declines. Despite those declines, Resideo misled
investors about its RTS business generally and about the Company's
management of its supply-chain in particular.
After the close of trading on October 22,
2019, Resideo released preliminary financial results for the
third quarter, and surprised investors by announcing earnings that
significantly missed estimates. The Company also materially reduced
its earnings guidance for 2019. The drivers of these disappointing
results were the lower sales of thermostats and the performance of
the RTS business. The Company also announced the replacement of its
Chief Financial Officer. In response to these disclosures, the
price of Resideo stock declined precipitously, wiping out
significant shareholder value.
If you wish to serve as Lead Plaintiff for the Class, you must
file a motion with the Court no later than January 7, 2020. Any member of the proposed Class
may move the Court to serve as Lead Plaintiff through counsel of
their choice. Members may also choose to do nothing and remain part
of the proposed Class.
If you have pertinent information concerning this matter or are
a shareholder who has suffered a material loss on your Resideo
investment, please contact BLB&G Partner Avi Josefson at (212)
554-1493 or avi@blbglaw.com.
About BLB&G
BLB&G is widely recognized worldwide as a leading law firm
advising institutional investors on issues related to corporate
governance, shareholder rights, and securities litigation. Since
its founding in 1983, BLB&G has built an international
reputation for excellence and integrity and pioneered the use of
the litigation process to achieve precedent-setting governance
reforms. Unique among its peers, BLB&G has obtained several of
the largest and most significant securities recoveries in history,
recovering over $33 billion on behalf
of defrauded investors. More information about the firm can be
found online at www.blbglaw.com.
CONTACT:
Avi Josefson
Bernstein Litowitz Berger & Grossmann LLP
1251 Avenue of the Americas, 44th Floor
New York, New York 10020
(212) 554-1493
avi@blbglaw.com
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SOURCE Bernstein Litowitz Berger & Grossmann LLP