Glancy Prongay & Murray LLP Files Securities Class Action Lawsuit Against Orbital ATK, Inc.
August 18 2016 - 7:58PM
Business Wire
Glancy Prongay & Murray LLP (“GPM”) announces that it has
filed a class action lawsuit in the United States District Court
for the Southern District of New York on behalf of a class (the
“Class”) consisting of persons and entities that acquired Orbital
ATK, Inc. (“Orbital ATK” or the “Company”) (NYSE: OA) securities
between June 1, 2015 and August 9, 2016 (the “Class
Period”).
If you are a member of the Class described above, you may move
the Court no later than October 11, 2016 to serve as lead
plaintiff. Please contact Casey Sadler at 888-773-9224 or
310-201-9150, or at shareholders@glancylaw.com to discuss this
matter.
The complaint alleges that throughout the Class Period,
Defendants made false and/or misleading statements, as well as
failed to disclose material adverse facts about the Company’s
business, operations, and prospects. Specifically, Defendants made
false and/or misleading statements and/or failed to disclose: (1)
that the Company was improperly accounting for items related to a
Defense Systems Group contract in violation of Generally Accepted
Accounting Principles (“GAAP”); (2) that the Company was
overstating revenues and understating losses associated with the
operations of the Lake City Plant; (3) that the Company’s internal
controls over financial reporting, as well as the Company’s
disclosure controls and procedures, contained a material weakness;
and (4) that, as a result of the foregoing, Orbital ATK’s financial
statements, and Defendants’ statements about Orbital ATK’s
business, operations, and prospects, were false and misleading
and/or lacked a reasonable basis.
On August 10, 2016, the Company announced the need to restate
prior financial statements relating to a long term government
contract. Orbital ATK reported issues relating to, its $2.3 billion
long-term contract with the U.S. Army to manufacture and supply
small caliber ammunition at the U.S. Army’s Lake City Army
Ammunition Plant. According to Orbital ATK, the restatement will
likely reduce previously reported pre-tax operating income by $400
million to $450 million, and reduce 2015 annual revenues by $100
million to $150 million.
On this news, Orbital ATK’s stock price fell $17.98 per share,
or over 20%, to close at $70.79 per share on August 10, 2016, on
unusually heavy trading volume.
To be a member of the Class you need not take any action at this
time; you may retain counsel of your choice or take no action and
remain an absent member of the Class. If you wish to learn
more about this action, or if you have any questions
concerning this announcement or your rights or interests with
respect to these matters, please contact Casey Sadler,
Esquire, of Glancy Prongay & Murray LLP, 1925 Century Park
East, Suite 2100, Los Angeles, California 90067, at (310) 201-9150,
by e-mail to shareholders@glancylaw.com, or visit our website
at http://www.glancylaw.com.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
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version on businesswire.com: http://www.businesswire.com/news/home/20160818006339/en/
Glancy Prongay & Murray LLP, Los AngelesCasey Sadler,
310-201-9150 or
888-773-9224shareholders@glancylaw.comwww.glancylaw.com
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