Case Page

 

Case Status:    DISMISSED    
On or around 10/11/2016 (Other)

Filing Date: April 28, 2014

According to the law firm press release, through a variety of brands, including ADT, ADT Pulse and Companion Services, ADT provides electronic security, interactive home and business automation, and related monitoring services to approximately 6.5 million residential and small business customers in the United States and Canada.

The complaint alleges that throughout the Class Period, defendants disseminated false and misleading statements to the investing public about the Company’s financial condition and future business prospects for fiscal 2013 and 2014, including representations concerning the Company’s strong current financial condition and bullish forecasts of future financial results. In fact, ADT was experiencing reduced non-Pulse demand, accelerating churn rate and attrition, and increased advertising and service costs, all of which were negatively impacting ADT’s recurring revenue, margins and earnings, such that the Company did not have a reasonable basis for its 2013 and 2014 quarterly and full-year financial forecasts. As a result of defendants’ false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period, trading as high as $49.73 per share on March 13, 2013.

On November 25, 2013, ADT announced in a press release that the Company would repurchase the vast majority of a board member and Corvex Management LP’s ADT common stock position at an above-market price of $44.01 per share, and that, notwithstanding the board member having joined the Board of Directors less than one year earlier, he was resigning from ADT’s Board effective immediately. On this disclosure, investors began to question the veracity of ADT’s earnings forecasts, and the price of ADT common stock dropped nearly 10% to $40.85 per share.

Then, on January 30, 2014, before the market opened, ADT issued a press release announcing severely disappointing first quarter 2014 results, falling far short of ADT’s previous bullish EPS guidance and Wall Street’s consensus estimate. Investors reacted swiftly, and the price of ADT stock fell 17% from $37.81 per share to $31.40 per share.

On July 11, 2014, the Court issued an Order appointing lead plaintiff and approving lead counsel. Lead Plaintiff filed a consolidated complaint on August 11.

On June 3, 2015, the Court dismissed this case without prejudice. Plaintiffs were given leave to amend their complaint. Plaintiffs did not file an amended complaint, thus this case was dismissed with prejudice on July 2. Plaintiffs filed a Notice of Appeal of the dismissal on August 7.

On October 11, 2016, the Court of Appeals issued a Mandate affirming the decision of the District Court.

COMPANY INFORMATION:

Sector: Services
Industry: Security Systems & Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: ADT
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: S.D. Florida
DOCKET #: 14-CV-80566
JUDGE: Hon. William P. Dimitrouleas
DATE FILED: 04/28/2014
CLASS PERIOD START: 11/27/2012
CLASS PERIOD END: 01/29/2014
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Robbins Geller Rudman & Dowd LLP (Boca Raton)
    120 East Palmetto Park Road, Suite 500, Robbins Geller Rudman & Dowd LLP (Boca Raton), FL 33432
    561.750.3000 561.750.3364 ·
No Document Title Filing Date
COURT: S.D. Florida
DOCKET #: 14-CV-80566
JUDGE: Hon. William P. Dimitrouleas
DATE FILED: 08/11/2014
CLASS PERIOD START: 11/27/2012
CLASS PERIOD END: 01/29/2014
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Motley Rice LLC (Mount Pleasant)
    28 Bridgeside Boulevard, Motley Rice LLC (Mount Pleasant), SC 29464
    843.216.9000 843.216.9450 · inquiry@motleyrice.com
  2. Robbins Geller Rudman & Dowd LLP (Boca Raton)
    120 East Palmetto Park Road, Suite 500, Robbins Geller Rudman & Dowd LLP (Boca Raton), FL 33432
    561.750.3000 561.750.3364 ·
No Document Title Filing Date