BOSTON, Aug. 23, 2019 /PRNewswire/ -- Thornton Law Firm
LLP announces that a lawsuit has been filed against Textron Inc.
("Textron" or the "Company") (NYSE: TXT) alleging that Textron
violated the federal securities laws. Investors who purchased
Textron stock between January 31,
2018 and October 17, 2018, and
are interested in participating the lawsuit as a lead plaintiff,
are encouraged to contact the Thornton Law Firm and learn more
about the case at www.tenlaw.com/cases/Textron. Investors may also
email the firm to obtain information at shareholder@tenlaw.com or
call (617) 531-3917.
Textron is a global manufacturer and distributor of small
aircrafts and recreational vehicles. On March 6, 2017, Textron expanded its recreational
vehicle business by acquiring Arctic Cat Inc. ("Arctic Cat").
Throughout the Class Period, Textron allegedly repeatedly touted
Arctic Cat as an important growth business for the Company,
reassuring investors about dealer demand, end-market sales and
earnings prospects for its Arctic Cat products.
Notwithstanding these positive representations to the market,
Defendants allegedly failed to disclose that: (1) end-market sales
of Arctic Cat products were slowing, resulting in a massive glut of
old Arctic Cat inventory on dealers' floors; (2) in order to clear
out this old inventory, the Company provided significant price
discounts, which negatively impacted Textron's earnings; (3) as a
result, Textron's positive statements about Arctic Cat's business,
operations, and prospects were false and
misleading.
The truth about Arctic Cat's inventory problems was revealed on
October 18, 2018, when Textron
reported weak third quarter 2018 earnings and cut its full-year
2018 forecast. The Company blamed the shortfall on heavy
discounts issued by Textron to clear out old Arctic Cat
inventory. Analysts immediately lowered their price targets
on Textron stock citing the inventory concerns at Arctic Cat.
On this news, Textron's stock fell $7.29 or 11.25 percent, to close at $57.49 on October 18,
2018, erasing $1.8 billion
from its market capitalization.
Investors who purchased TXT securities between January 31, 2018 and October 17, 2018 are encouraged to contact the
Thornton Law Firm's shareholder rights team at
www.tenlaw.com/cases/Textron. Interested TXT shareholders have
until October 21, 2019 to apply to be
lead plaintiff. The class has not yet been certified. Until
certification occurs, you are not represented by an attorney. If
you choose to take no action, you can remain an absent class
member.
The Thornton Law Firm's securities attorneys are highly
experienced in representing individual shareholders and
institutional investors in recovering damages caused by violations
of the securities laws. Its attorneys have established track
records litigating securities cases in courts throughout the
country and recovering losses on behalf of shareholders. This may
be considered Attorney Advertising in some jurisdictions. Prior
results do not guarantee or predict a similar outcome with respect
to any future matter.
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SOURCE Thornton Law Firm LLP