Lundin Law PC announced Securities Class Action lawsuit against Lexmark International, Inc. and encourages investors with losses to contact the firm.
Lundin Law PC, a shareholder rights firm, announces the filing of a class action lawsuit against Lexmark International, Inc. for possible violations of federal securities laws between 1 August 2014 and 20 July 2015, inclusive. Investors who purchased or otherwise acquired shares during the Class Period should contact the firm prior to the 19 September 2017 lead plaintiff motion deadline.
According to the complaint, throughout the above mentioned period, Lexmark made materially false and/or misleading statements, and/or failed to disclose, that: end-user demand and growth for the company’s supplies business was deteriorating; that pricing increases were the primary driver of supplies revenue growth, not end-user demand; that customers in the supplies channel reacted by buying ahead of anticipated pricing increases; and that as a result, there were excessive inventory levels at its European wholesale distributors.
On 21 July 2015, Lexmark reported poor results for its second quarter ending 30 June 2015 and lowered its 2015 sales guidance. The company revealed its supplies growth was not attributable to end-user demand but rather the result of its European customers buying ahead of customary price increases which produced excessive inventory. Upon release of this news, shares of Lexmark fell in value materially, which caused investors harm according to the complaint.
No class has been certified in the above action yet.
The period in question pre-dates the acquisition of Lexmark by the Ninestar Corporation (formally Apex Technology Co. Ltd) in November 2016.