Shareholder Alert: Robbins LLP Announces AZZ, Inc. (AZZ) Sued for Misleading Shareholders
SAN DIEGO & FORT WORTH, Texas--(BUSINESS WIRE)--Nov 6, 2019--
Shareholder rights law firm Robbins LLP announces that a purchaser of AZZ, Inc. (NYSE: AZZ) filed a class action complaint against the company for alleged violations of the Securities Exchange Act of 1934 between July 3, 2018 and October 8, 2019. AZZ provides galvanizing and metal coating services, welding solutions, specialty electronic equipment, and highly engineered services.
If you suffered a loss as a result of AZZ’s misconduct, click here.
AZZ, Inc. (AZZ) Reveals of Lack of Internal Controls
According to the complaint, throughout the relevant period, AZZ filed its quarterly reports on Form 10-Q, touting revenues in the hundreds of millions and net income in the tens of millions. In each of its Form 10-Q’s, AZZ failed to disclose that its internal control over financial reporting was not effective due to the Company’s improper implementation of ASC 606, resulting in improper revenue reconciliations. These issues became public knowledge on May 17, 2019, when AZZ disclosed in its Form 10-K that it had a material weakness in its internal control over financial reporting related to its revenue reconciliations. On October 11, 2019, AZZ filed a Notification of Late Filing with the SEC stating it needed “additional time to finalize its income tax accounting for the quarter, which [had] been impeded by an ongoing analysis of certain historical deferred tax balances.” Following this filing, on October 25, 2019, AZZ announced its Chief Accounting Officer’s departure effective by the end of the month. By the end of the class period, AZZ’s stock price had fallen 17% to close at $37.12 per share and has yet to recover.
AZZ, Inc. (AZZ) Shareholders Have Legal Options
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.
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SOURCE: Robbins LLP
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PUB: 11/06/2019 01:13 PM/DISC: 11/06/2019 01:13 PM