Shareholder Alert: Robbins LLP Reminds Investors It is Investigating the Officers and Directors of A.O. Smith Corporation (AO...
February 18 2020 - 12:10PM
Business Wire
Shareholder rights law firm Robbins LLP reminds investors that
it is investigating the officers and directors of A.O. Smith
Corporation (NYSE: AOS) for breaches of fiduciary duties, waste of
corporate assets, unjust enrichment, and violations of the
Securities Exchange Act of 1934. A.O. Smith manufactures and
markets water heaters and boilers.
If you suffered a loss as a result of A.O. Smith's misconduct,
click here.
A.O. Smith Corporation (AOS) Accused of Misleading
Investors
According to the complaint, A.O. Smith has operated in China for
over 20 years. In 2018, A.O. Smith boasted "record" sales of $3.2
billion of which China sales exceeded $1 billion. However, in April
2019, A.O. Smith reported disappointing financial results with
sales that declined 5% and net earnings that declined 7%, primarily
due to plummeting Chinese sales. On this news, A.O. Smith's stock
fell nearly 6%. A.O. Smith's directors played it off as a temporary
weakness related to macro events. Then in May 2019, J Capital
Research USA LLC issued a scathing report on A.O. Smith's China
operations and its relationship with Jiangsu UTP Supply Chain
("UTP"), an undisclosed partner in China. The report charged A.O.
Smith with inflating its sales and earnings figures, and revealed
that UTP may be responsible for as much as 75% of A.O. Smith's
China sales. In response, A.O. Smith published a press release,
which essentially admitted that the company had substantial
interests in China with UTP. Following these disclosures, A.O.
Smith's stock closed at $41.19 per share on May 29, 2019, 39% below
the class period high of $68 per share, and has yet to recover.
A.O. Smith Corporation (AOS) Shareholders Have Legal
Options
Contact us to learn more: Leo Kandinov (800) 350-6003
LKandinov@robbinsllp.com Shareholder Information Form
Robbins LLP is a nationally recognized leader in shareholder
rights law. The firm represents individual and institutional
investors in shareholder derivative and securities class action
lawsuits, and has helped its clients realize more than $1 billion
of value for themselves and the companies in which they have
invested. Click Here to receive free alerts from Stock Watch when
companies engage in wrongdoing.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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Leo Kandinov Robbins LLP 5040 Shoreham Place San Diego, CA 92122
LKandinov@robbinsllp.com (619) 525-3990 or Toll Free (800) 350-6003
www.robbinsllp.com
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