Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against Trinity Industries, Inc.
Oklahoma City, OK (April 29, 2015) – On April 27, 2015, a securities class action lawsuit was filed in the United States District Court for the Northern District of Texas against Trinity Industries, Inc. (NYSE: TRN) (“Trinity”). 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 16, 2012 through April 21, 2015. More specifically, this litigation was filed because the Complaint failed to disclose that: (1) Trinity altered certain dimensions of the ET-Plus in 2005 without informing the Federal Highway Administration, which certifies that safety of roadside hardware; and (2) as a result, Trinity Industries’ public statements were materially false and misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
During October, 2014, the New York Times reported that at least three states had banned the use of guardrail heads manufactures by Trinity. They further reported that the State of Virginia threatened to remove guardrails sold by Trinity unless it performed additional safety tests.
On October 20, 2014, a jury found that Trinity deliberately withheld information from the U.S. about cost-saving changes to its highway guardrail system which made it more dangerous, ruling the company defrauded the government by $175 million. The verdict was the result of a whistleblower lawsuit, brought by Joshua Harman, which claimed that Trinity made secret design changes that transformed one of its products into a potentially lethal highway hazard, falsely passing off the product as eligible for federal funding. The same day, an article was published by Bloomberg News, reporting on the jury’s verdict. As a result of this news, shares of Trinity fell $4.42, or over 12.3%, on unusually heavy volume, to close at $31.42 on October 20, 2014.
On April 22, 2015, an article was published by Bloomberg News, reporting that Trinity was at the center of a Federal Criminal Probe. As a result of this news, shares of Trinity fell $3.43, or over 9.4%, on unusually heavy volume, to close at $32.82 on April 22, 2015.
On April 28, 2015, Trinity filed a Form 8-K with the SEC advising that they received a subpoena from the U.S. Department of Justice which requested documents from 1999 through the present relating to the ET 2000 and ET Plus guardrail end-terminal products.
Plaintiff seeks to recover damages on behalf of all Trinity 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 Monday, June 29, 2015 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.