According to a press release dated November 12, 2008, the complaint charges the company and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Waters Corp. provides high-performance liquid chromatography products and services.
The Company distributes its products worldwide to a wide range of industries, such as pharmaceuticals, chemicals, and environmental testing.
The complaint alleges that the representations contained in Water Corp.’s press releases, SEC filings, conference calls, and presentations during the Class Period were materially false and misleading when made because they failed to disclose: (i) that the Company was experiencing a slowdown in sales in the Japanese market as a result of decreased government regulation, which reduced the need for the Company’s products and services; (ii) that the Company’s earnings were being materially impacted by an increased tax rate; and (iii) as a result of the foregoing, the Company had no reasonable basis for its 2007 earnings guidance.
According to the complaint, on January 22, 2008, Waters Corp. announced its financial results for the fourth quarter and year-end 2007, the period ended December 31, 2007. Following this press release, the defendants held a conference call with analysts and investors and revealed that an unexpected increase in [its] annual tax rate, among other factors, adversely affected [its] bottom-line performance. Moreover, the Company stated that its Japanese sales were weaker than anticipated due to a change in the testing protocols for drinking water analysis in Japan which the Company knew about since last year. Upon this news, shares of the Company’s stock fell $14.65 per share, or approximately 20%, to close at $58.58 per share, on heavy trading volume.
On February 23, 2009, an Order Granting Motion Of Inter-Local Pension Fund GCC/IBT For Appointment As Lead Plaintiff And Approval Of Selection Of Lead Counsel was issued by the Court.
On April 23, 2009, an Amended Class Action Complaint was filed by the Lead Plaintiffs against the Defendants.
On June 06, 2009, a Defendants’ Motion To Dismiss The Amended Class Action Complaint In Its Entirety was filed in this action.
On March 25, 2010, a memorandum and an accompanying order was entered by the Court dismissing the plaintiffs’ claims against the defendants in their entirety.
On April 23, 2010, a Notice of Appeal was filed with the Court of Appeals.