SAN DIEGO & MIDDLETON, Wis.--(BUSINESS WIRE)--
Shareholder rights law firm Robbins Arroyo LLP announces that investors filed another class action complaint against Spectrum Brands Holdings Inc. (SPB) for alleged violations of the Securities and Exchange Act of 1934 between June 14, 2016 and November 16, 2018. Spectrum Brands is a consumer products company manufacturing, marketing, and distributing a variety of products in approximately 160 countries.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/spectrum-brands-may-19/
Spectrum Brands Accused of Inflating Stock Price
According to the complaint, between 2016 and 2018, Spectrum Brands had been falsely reassuring investors of its progress with its improvement initiatives, which included the development of its Ohio and Kansas distribution centers. While telling investors that the distribution centers were on track to help reduce expenses and inventory, Spectrum Brands failed to mention the self-inflicting, recurring operational issues in those facilities. Former CEO Andreas Rouve repeatedly downplayed the glitches regarding the construction and operation of the distribution. However, the truth was revealed in an April 2018 conference call when new CEO David Maura admitted to long term problems with the facilities and the prolonged recovery period. On this news, Spectrum Brands’ stock fell approximately 20%, to close at $75.01 per share on April 26, 2018. Then, in November 2018, Spectrum Brands announced a $92.5 million goodwill write down stemming from the inadequately performed consolidation projects. On this news, Spectrum Brands’ stock fell another 19%. Since then, the stock has continued to fall and trades significantly below the stock’s class period high.
Spectrum Brands Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leo Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo 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.
Attorney Advertising. Past results do not guarantee a similar outcome.