SAN DIEGO, CA / ACCESSWIRE / November 20, 2019 / The Shareholders Foundation, Inc. announces that a that a lawsuit is pending for certain investors in NYSE:AOS shares.
On May 28, 2019, a lawsuit was filed against A. O. Smith Corporation over alleged securities laws violations. The plaintiff alleged that the defendants failed to disclose to investors that the Company had undisclosed business connections and entanglements with UTP through which it funneled up to 75% of its China product sales, that the Company had used UTP to engage in channel stuffing by artificially inflating inventories purportedly sold through distributors that were not based on consumer demand, thereby approximately doubling the normal level of inventory at such distributors, that the Company had used its UTP relationship to artificially inflate the sales figures it reported to investors by as much as 8% and to conceal worsening sales trends that the Company was experiencing in China, that the Company's sales growth had been primarily in lower margin products as its higher priced products were being undercut by competition in "second-tier" Chinese cities, causing the Company to experience significant market pressures, that the Company had increased its cash reserves in China to over $530 million in furtherance of its channel stuffing and sales manipulation scheme, encumbering the Company's ability to repatriate the cash for use for capital expenditures, and as a result, the Company's public statements were materially false and misleading at all relevant times.
Those who purchased A. O. Smith Corporation (AOS) shares should contact the Shareholders Foundation, Inc.
Shareholders Foundation, Inc.
+1 (858) 779-1554
3111 Camino Del Rio North
San Diego, CA 92108
The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and a settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. Any referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is only provided as a public service. It is not intended as legal advice and should not be relied upon.
SOURCE: Shareholders Foundation, Inc.
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