NEW YORK, June 06, 2019 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP announces that a federal securities class action lawsuit has been filed against A.O. Smith Corporation (“A.O. Smith” or the “Company”) (AOS) in the United States District Court for the Eastern District of Wisconsin on behalf of those who purchased or acquired the securities of A.O. Smith between July 26, 2016 through May 16,2019, inclusive (the “Class Period”).
Investors who purchased the shares of A.O. Smith Corporation are urged to contact the firm immediately at email@example.com or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action on our website www.whafh.com.
If you have incurred losses in the shares of A.O. Smith Corporation, you may, no later than July 29, 2019, request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights as an investor in A.O. Smith Corporation.
According to the filed complaint, 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%, closing at $43.85
Wolf Haldenstein Adler Freeman & Herz LLP has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735, via e-mail at firstname.lastname@example.org, or visit our website at www.whafh.com.
Wolf Haldenstein Adler Freeman & Herz LLP
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Tel: (800) 575-0735 or (212) 545-4774
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