Lawsuit Overview
October 6, 2016 - The U.S. Court of Appeals for the Eleventh Circuit affirmed the district court's decision.
August 7, 2015 - The lead plaintiffs filed a notice of appeal.
July 2, 2015 - The court dismissed the case with prejudice.
June 4, 2015 - The court granted the defendants' motions to dismiss and granted lead plaintiffs leave to file an amended complaint.
November 13, 2014 - The lead plaintiffs filed a notice of voluntary dismissal, dismissing the charges against an individual defendant without prejudice.
September 25, 2014 - The defendants filed motions to dismiss.
August 11, 2014 - The lead plaintiffs filed an amended complaint.
July 11, 2014 - The lead plaintiffs and lead counsel were appointed and all cases were consolidated.
June 27, 2014 - Lead plaintiff motions were filed.
April 28, 2014 - An investor in shares of ADT Corporation (The) (NYSE: ADT) filed a lawsuit in the U.S. District Court for the Southern District of Florida agaisnt ADT Corporation (The) over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between November 27, 2012 and January 29, 2014.
According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired securities of ADT Corporation (The) (NYSE: ADT) between November 27, 2012 and January 29, 2014 that ADT Corporation (The) and certain of its officers and directors violated Federal Securities Laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
More specifically, the plaintiff claims that the defendants between November 27, 2012 and January 29, 2014 disseminated allegedly false and misleading statements to the investing public about ADT Corporation (The)'s financial condition and future business prospects for fiscal 2013 and 2014, including representations concerning ADT Corporation (The)'s strong current financial condition and bullish forecasts of future financial results.
The plaintiff says that ADT Corporation (The) was experiencing reduced non-Pulse demand, accelerating churn rate and attrition, and increased advertising and service costs, all of which were negatively impacting ADT Corporation (The)'s recurring revenue, margins and earnings, such that ADT Corporation (The) did not have a reasonable basis for its 2013 and 2014 quarterly and full-year financial forecasts and that as a result of defendants’ statements, ADT Corporation (The)'s stock traded at allegedly artificially inflated prices between November 27, 2012 and January 29, 2014, trading as high as $49.73 per share on March 13, 2013.
ADT Corporation (The) reported that its Total Revenue rose from over $2.59 billion for the 52 weeks period that ended on September 24, 2010 to over $3.3 billion for the 52 weeks period that ended on September 27, 2013 and that its respective Net Income increased from $239 million to $421 million. Shares of ADT Corporation (The) (NYSE: ADT) traded in early 2013 as high as $49.41 per share.
On November 25, 2013, ADT Corporation (The) announced that it has entered into an agreement to repurchase 10.24 million shares of ADT common stock beneficially owned by Corvex Management LP, at a purchase price of $44.01 per share. Shares of ADT Corporation (The) (NYSE: ADT) declined from $44.01 per share on November 22, 2013, to $38.14 per share on January 27, 2014.
Then on January 30, 2014, ADT Corporation (The) reported its first quarter 2014 results. Shares of ADT Corporation (The) (NYSE: ADT) declined from $38.09 per share on January 29, 2014, to $28.85 per share on February 3, 2014 and continued to decline to as low as $28.08 per share on March 14, 2014.
On April 28, 2014, ADT Corporation (The) (NYSE: ADT) shares closed at $29.08 per share.