NEW YORK, June 18, 2019 (GLOBE NEWSWIRE) -- Bernstein Liebhard LLP, a nationally acclaimed investor rights law firm, announces that approximately six weeks remain to make a motion to serve as lead plaintiff in a securities class action lawsuit filed on behalf of those who purchased or acquired the securities of A.O. Smith Corporation (“A.O. Smith” or the “Company”) (AOS) between July 26, 2016, and May 16, 2019, both dates inclusive (the “Class Period”). The lawsuit, which alleges claims under the Securities Exchange Act of 1934, seeks to recover A.O. Smith shareholders’ investment losses.
If you purchased AOS securities, and/or would like to discuss your legal rights and options, please visit A.O. Smith Corporation Class Action Lawsuit or contact Matthew E. Guarnero toll free at (877) 779-1414 or MGuarnero@bernlieb.com.
According to the lawsuit, which is pending in the United States District Court for the Eastern District of Wisconsin, throughout the Class Period the defendants failed to disclose that the Company had used a distribution partner, Jiangsu UTP Supply Chain (UTP), to artificially inflate the Company’s sales and gross margins in the important Chinese market. As a result of this adverse information being withheld from the market, the price of the Company’s stock was artificially inflated during the Class Period.
On May 16, 2019, analyst firm J Capital Research USA LLC (“J Capital”) published a report alleging that A.O. Smith used several manipulative practices to show higher sales and earnings in its China operations. The report stated that A.O. Smith had undisclosed business relationships and entanglements with UTP, accounting for up to 75% of the Company’s product sales in China. The report also questioned whether A.O. Smith had unencumbered access to more than $530 million in cash on hand it claimed to hold in China. On this report, the price of A.O. Smith shares fell 6%.
If you wish to serve as lead plaintiff in the A.O. Smith class action, you must move the court no later than July 29, 2019. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you take no action, you may remain an absent class member.
If you purchased A.O. Smith Corporation securities, and/or would like to discuss your legal rights and options, please visit https://www.bernlieb.com/cases/aosmithcorp-aos-lawsuit-class-action-fraud-stock-136/ or contact Matthew E. Guarnero toll free at (877) 779-1414 or MGuarnero@bernlieb.com.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
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