According to the Complaint, Mueller Water Products operates in two business segments: Infrastructure and Technologies. Infrastructure, formerly known as Mueller Co., manufactures valves for water and gas systems, fire hydrants, and a broad line of pipe repair products. Technologies, formerly known as Mueller Technologies, offers residential and commercial water metering, water leak detection, and pipe condition assessment products.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Complaint alleges Defendants made false and/or misleading statements and/or failed to disclose: (1) that the Company lacked adequate testing for product quality; (2) that certain products with radio components were susceptible to fail prematurely; (3) that, as a result, the Company was reasonably likely to incur increased expenses, including warranty costs; (4) that these costs would materially impact the Company’s financial statements; (5) that the Company lacked adequate internal controls over warranty costs and estimates; and (6) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On June 27, 2019, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed an amended Complaint on September 18. On December 25, Lead Plaintiff filed a second amended Complaint. Defendants filed a Motion to Dismiss the second amended Complaint on January 31, 2020. On June 11, the Court issued an Order granting Defendants' Motion to Dismiss. The case was dismissed with prejudice.