AZZ is a global provider of galvanizing services, welding solutions, specialty electrical equipment and highly engineered services to the power generation, transmission, distribution, refining and industrial markets. It has two distinct operating segments: the Energy Segment and Galvanizing Segment. AZZ Galvanizing provides metal finishing solutions. AZZ Energy is dedicated to delivering safe and reliable transmission of power from generation sources to end customers, and automated weld overlay solutions for corrosion and erosion mitigation to critical infrastructure in the energy markets worldwide. This case concerns revenue recognition by AZZ Energy, or the “Energy Segment.”
According to the law firm press release, on January 9, 2018, AZZ announced that it had determined that it should have accounted differently for certain contracts within its Energy Segment. AZZ said it has been reviewing the impact of this change on its historical accounting and impacts on its 2015 through 2017 financial results and it said it would delay the release of its Form 10-Q for the quarter ended November 30, 2017.
The Complaint alleges that between April 22, 2015 and January 8, 2018, inclusive (the "Class Period"), the Defendants repeatedly misrepresented their financial results, failed to report revenues in compliance with FASB accounting standards, lacked adequate controls over financial reporting and failed to disclose the failure of more than two years of purported efforts to evaluate new accounting standards.