Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against Supreme Industries, Inc.
Oklahoma City, OK (November 8, 2016) – On November 4, 2016, a securities class action lawsuit was filed in the United States District Court for the Central District of California against Supreme Industries, Inc. (NYSE: STS). 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 July 22, 2016 through October 21, 2016. More specifically, this litigation was filed because the Company misrepresented the order backlog figure for the third quarter of 2016 in its earnings projections. On July 22, 2016, the Company held a conference call to discuss the earnings of the second quarter of 2016. On the call, the earning projections for the third quarter of 2016 were discussed. On the call the Company’s Chief Financial Officer Matthew Long stated, in part, that “the backlog is going to settle more towards the way it looked Q3 last year.”
However, on October 21, 2016, the Company filed a Form 8-K with the SEC reporting on the earnings of the third quarter of 2016 and revealing that at the end of the third quarter of 2016, order backlog was $58.1 million, which was down from the $74.4 million in order backlog at the end of last year’s same quarter. The Company has cited as the reason for the discrepancy as the fact that timing of several large orders increased the backlog at the end of the third quarter 2015.
After the filing, the Company’s shares declined to close at $13.68 per shares.
Cliffside Research published a report on October 22, 2016 The Party is Over For Supreme Industries, Inc., which discussed the significance of the huge percentage drop in backlog and insiders’ knowledge of Company’s struggling business by selling a substantial percentage of their Company stock. After the publication of the report, the Company’s shares declined to close at $11.30 on October 24, 2016.
Plaintiff seeks to recover damages on behalf of all Supreme 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, January 3, 2017 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 email@example.com, 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, November 8, 2016
by Robin Hester filed under