Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against Polaris Industries, Inc.
Oklahoma City, OK (October 26, 2016) – On September 16, 2016, a securities class action lawsuit was filed in the United States District Court for the District of Minnesota against Polaris Industries, Inc. (NYSE: PII). 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 February 20, 2015 through September 11, 2016. More specifically, this litigation was filed because the defendants issued false and misleading statements to investors and/or failed to disclose adverse facts regarding Polaris’s business and financial results, including that: (1) a material amount of Polaris vehicles were subject to a safety recall that would degrade the Polaris brand; (2) the safety recalls would subject to the Company to large potential liabilities, including an expensive and complicated repair process as well as loss of goodwill; (3) the recalls jeopardized the Company’s future revenues and profitability; (4) the Company overstated its full-year 2016 guidance; and (5) as a result of the foregoing, Defendants’ statements about Polaris’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
In July 2015, Polaris issued a recall for the Company’s model-year 2016 Youth RZR off-highway vehicle, citing fire hazards. Three other recalls of the Company’s RZR vehicles followed – in October 2015, December 2015, and April 2016 – impacting more than 160,000 RZR vehicles of various model years. Nevertheless, throughout the Class Period – and as recently as July 20, 2016 – Polaris consistently advised investors that the Company expected to report fiscal 2016 net income of at least $6.00 per diluted share.
On September 12, 2016, Polaris issued a press release disclosing that it was lowering its fiscal 2016 earnings guidance from $6.00 – $6.30 per diluted share to $3.30 to $3.80 per diluted share – $2.50 to $2.70 per diluted share lower than the Company’s prior guidance. The Company attributed its lowered guidance to the impact of RZR thermal-related problems, citing, in part, the Company’s inability “to sufficiently validate the initially identified RZR Turbo recall repair, necessitating a more complex and expensive repair solution.”
On this news, Polaris stock declined $4.05 to close on September 12, 2016 at $76.79 per share.
Plaintiff seeks to recover damages on behalf of all Polaris Industries, 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, November 15, 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 Wed, October 26, 2016
by Robin Hester filed under