Plaintiff's law firm issued a press release on October 4, 2018, announcing the lawsuit. According to the press release, Adient designs, engineers, and manufactures automotive seating for all vehicle classes and all major original equipment manufacturers and is one of the largest global automotive seating suppliers in the world.
The Complaint alleges that from the date of its formation, Adient and certain of its senior executives highlighted improvements in the efficiency of the Company’s capital-intensive metals business (a/k/a the SS&M business) as a key driver of its success. For example, Defendants repeatedly emphasized to investors that the Company was “solidly on track” to deliver 200-basis-point margin expansion by 2020, which was dependent in large part on operational and financial improvements in Adient’s core SS&M business. This statement and others were materially false and misleading, omitted information reasonable investors would consider important, and/or lacked a reasonable basis because, unbeknownst to investors, Adient’s core SS&M business faced significant operational problems such that the repeatedly touted 200-basis-point margin expansion was not “on track” at any point during the Class Period. As a result of Defendants’ false statements and/or omissions, Adient securities traded at artificially inflated prices during the Class Period.
On December 21, 2018, the Court issued an Order consolidating cases and appointing Lead Plaintiff and Counsel. Lead Plaintiff filed a consolidated amended Complaint on February 19, 2019. On May 8, Lead Plaintiff filed a second amended consolidated Complaint. Defendants filed a Motion to Dismiss the second amended Complaint on June 7. On April 2, 2020, the Court issued an Order granting Defendants' Motion to Dismiss.