AOS INVESTORS NOTICE: Lieff Cabraser Reminds Investors of Deadline in Class Action Against A.O. Smith Corporation
July 01 2019 - 9:00AM
Business Wire
The law firm of Lieff Cabraser Heimann & Bernstein, LLP
reminds investors of the upcoming deadline to move for appointment
as lead plaintiff in the class action that has been filed on behalf
of investors who purchased the common stock of A.O. Smith
Corporation (“AOS” or the “Company”) (NYSE: AOS) between July 26,
2016 through May 16, 2019, inclusive (the “Class Period”).
If you purchased AOS common stock during the Class Period, you
may move the Court for appointment as lead plaintiff by no later
than July 29, 2019. A lead plaintiff is a representative party who
acts on behalf of other class members in directing the litigation.
Your share of any recovery in the actions will not be affected by
your decision of whether to seek appointment as lead plaintiff. You
may retain Lieff Cabraser, or other attorneys, as your counsel in
the actions.
AOS investors who wish to learn more about the litigation and
how to seek appointment as lead plaintiff should click here or
contact Sharon M. Lee of Lieff Cabraser toll-free at
1-800-541-7358.
AOS, incorporated in Delaware and headquartered in Milwaukee,
Wisconsin, is a leading manufacturer and marketer of water heaters
and boilers. The Company has two primary operating segments, North
America and China, the latter of which accounted for one-third of
the Company’s sales in 2018, exceeding $1 billion.
The action alleges that, during the Class Period, Defendants
made repeated false statements about AOS’s earnings and sales in
China, and the prospects for future sales and earnings in that
market, artificially inflating the Company’s stock price.
On May 16, 2019, J Capital Research USA LLC (“J Capital”), a
research firm with a short interest in AOS stock, released a
well-documented, 66-page report, based on extensive interviews and
investigation in China, that AOS fueled its Chinese growth through
a previously undisclosed Chinese partner named Jiangsu UTP Supply
Chain (“UTP”). UTP is purportedly involved in almost every aspect
of AOS’s Chinese operations, and may be responsible for as much of
75% of AOS China sales, by allowing AOS to inflate its gross
margins though distributor-financed “channel stuffing.” This
channel stuffing enabled AOS to report growth that was no longer
working, by pushing UTP and distributors to take on more inventory
than they needed, which hid AOS’s sales decline. In addition, J
Capital revealed that AOS’s claim to have $539 million in
unencumbered cash balances in China is likely false, and that AOS
probably used that cash for distributor loans to prop up sales.
On the release of J Capital’s May 16, 2019 AOS report, the price
of AOS common stock declined $3.02 per share, or 6.27% from a
closing price of $48.12 on May 15, 2019, to close at $45.12 per
share on May 16, 2019, on elevated trading volume.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San
Francisco, New York, and Nashville, is a nationally recognized law
firm committed to advancing the rights of investors and promoting
corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of
the nation’s top plaintiffs’ law firms for fourteen years. In
compiling the list, the National Law Journal examines recent
verdicts and settlements and looked for firms “representing the
best qualities of the plaintiffs’ bar and that demonstrated unusual
dedication and creativity.” Law360 has selected Lieff Cabraser as
one of the Top 50 law firms nationwide for litigation, highlighting
our firm’s “laser focus” and noting that our firm routinely finds
itself “facing off against some of the largest and strongest
defense law firms in the world.” In late 2016, Benchmark Litigation
named Lieff Cabraser one of the “Top 10 Plaintiffs’ Firms in
America.”
For more information about Lieff Cabraser and the firm’s
representation of investors, please visit
http://www.lieffcabraser.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: https://www.businesswire.com/news/home/20190701005145/en/
Source/Contact for Media Inquiries Only Sharon M. Lee
Lieff Cabraser Heimann & Bernstein, LLP Telephone:
1-800-541-7358
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