Investigation Overview
August 26, 2016 (Shareholders Foundation) - An investigation on behalf of current long-term investors in shares of Aecom (NYSE:ACM) was announced over potential breaches of fiduciary duties by certain officers and directors at Aecom.
The investigation by a law firm concerns whether certain Aecom (NYSE:ACM officers and directors breached their fiduciary duties and caused damage to the company and its shareholders.
Aecom reported that its Total Revenue rose from over $8.35 billion for the 12 months period that ended on Sept. 30, 2014 to over $17.98 billion for the 12 months period that ended on Sept. 30, 2015 and that its Net Inceom of $229.85 million for the 12 months period that ended on Sept. 30, 2014 declined to a Net Loss of $154.84 million for the 12 months period that ended on Sept. 30, 2015.
On August 16, 2016, an article was published about AECOM stating, after a careful forensic financial and accounting analysis of AECOMs recent financial results and condition, we believe that AECOMs stock is worth approximately 33% - 45% less than its current price. The Report also noted that there are material weaknesses of internal controls over financial reporting associated with [the Companys] acquisition of URS [Corp.] and AECOM managements misaligned incentive structure, pursuant to which the Companys CEOs $18 million compensation in 2015 [was] heavily tied to its aggressive interpretation of its Free Cash Flow per share.