Shareholders Rights law firm Robbins LLP announces that a purchaser of Quad/Graphics Inc. (NYSE: QUAD) filed a class action complaint for alleged violations of the Securities Exchange Act of 1934 between February 22, 2017 and October 29, 2019. Quad/Graphics provides marketing solutions and printing services.
If you suffered a loss as a result of Quad/Graphic's misconduct, click here.
Quad/Graphics (QUAD) Cuts Dividends and Lowers Sales Guidance
According to the complaint, throughout the relevant period, Quad/Graphics released financial results that touted the Company's increasing net sales and consistently reaffirmed its full-year 2019 guidance. Despite auspicious financial statements that assured the Company's viability, on October 29, 2019, Quad/Graphics announced to shareholders that the Company was cutting dividend payments in half to $0.15 per share due to declining net sales. In addition, Quad/Graphics disclosed plans to divest its book business, which produces $200 million in annual sales, due to "lower market prices on paper byproduct recoveries." To reflect the upcoming divestiture of its book business, the Company decreased its 2019 sales guidance from the previous range of $4.05 billion to $4.25 billion to $3.9 billion. On this news, the following day Quad/Graphics's share price fell $6.42 per share, or approximately 57%, to close at $4.85 and has yet to recover.
Quad/Graphics, Inc (QUAD) 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.
Attorney Advertising. Past results do not guarantee a similar outcome.