According to the law firm press release, Trinity is a diversified industrial company that owns a variety of businesses that provides products and services to the energy, transportation, chemical, and construction sectors.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Trinity engaged in cost-cutting alterations to its ET-Plus guardrails; (2) the safety of its units was compromised as a result of the alterations; (3) the crash tests on Trinity’s products may have been flawed; and (4) Trinity faces additional civil and criminal liabilities as a result of the flawed crash tests. As a result of the foregoing, Defendants’ statements about Trinity’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis in that the Company’s liabilities were understated, and its financial projections were overstated
After the market closed on April 21, 2015, an article published on Bloomberg stated that the U.S. Justice Department is investigating the Federal Highway Agency’s support of Trinity’s highway guardrail system. On this news, Trinity shares declined $3.43 per share, over 9%, to close at $32.82 per share on April 22, 2015. On April 24, 2015, the Company confirmed the initiation of the federal investigation in a conference call with investors. On this news, Trinity shares declined an additional $4.66 per share, or 14%, to close at $28.70 per share on April 24, 2015.
On June 18, 2015, the first identified case was voluntarily dismissed. A similar action was filed and docketed under 15-CV-02093, and the action continues there.
This action was administratively closed on March 13, 2017.