Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against Orbital ATK, Inc.
Oklahoma City, OK (August 16, 2016) – On August 12, 2016, a securities class action lawsuit was filed in the United States District Court for the Eastern District of Virginia against Orbital ATK, Inc. (NYSE: OA). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is June 1, 2015 through August 9, 2016. More specifically, this litigation was filed because the Company made false and/or misleading statements and/or failed to disclose that: (i) Orbital lacked effective control over financial reporting; (ii) as a result, the Company failed to record an anticipated loss on the Contract after the loss became evident in 2015, as required by generally accepted accounting principles (“GAAP”); and (iii) as a result of the foregoing, Orbital’s public statements were materially false and misleading at all relevant times.
On August 10, 2016, the Company announced the need to restate prior financial statements because of “accounting errors obscured losses of up to $450 million on a Pentagon arms contract.” The problems were uncovered as the company installed new enterprise systems and relate primarily to a $2.3 billion contract with the U.S. Army to manufacture and supply ammunition at the Lake City Army Ammunition Plant in Independence, Mo., for an initial period of seven years and up to 10 years total. According to Orbital, the restatement will likely reduce pre-tax operating income by $400 million to $450 million, and reduce 2015 annual revenues by $100 million to $150 million.
As a result of the Company’s statement, Orbital’s shares fell by over $16.53 per share, during intraday trading on August 10, 2016.
Plaintiff seeks to recover damages on behalf of all Orbital ATK, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Tuesday, October 11, 2016 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
To join this class action, click here to obtain an investor certification. Once complete, please email this form to firstname.lastname@example.org, fax to us at (405) 239-2112 or send by regular mail to Federman & Sherwood, 10205 North Pennsylvania Avenue, Oklahoma City, OK 73120, ATTN: Robin.
Posted on Tue, August 16, 2016
by Robin Hester filed under