Robbins Arroyo LLP: Forterra, Inc. (FRTA) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against Forterra, Inc. (NasdaqGS: FRTA). The complaint is brought on behalf of all purchasers of Forterra securities between October 18, 2016 and August 14, 2017 and/or pursuant to the company’s October 21, 2016 initial public offering (“IPO”), for alleged violations of the Securities Exchange Act of 1934 and the Securities Act of 1933 by Forterra’s officers and directors. Forterra manufactures water and drainage pipe and products in the United States and Eastern Canada.
Forterra Accused of Masking Increasing Competitive Pricing Pressures
According to the complaint, on October 21, 2016, Forterra held its IPO of 18,420,000 shares at a price of $18.00 per share. That same day, Forterra filed its IPO prospectus with the U.S. Securities and Exchange Commission in which the company claimed that its organic growth strategy was focused on leveraging its low-cost operations and high level of customer service to cross-sell its products to existing customers and gain market share. On May 15, 2017, Forterra revealed that it produced no organic growth for the first quarter of 2017, causing the company’s share price to fall over 24% to close at $14.93 per share on May 15, 2017. Then, on August 10, 2017, Forterra disclosed that it again produced no organic growth, this time for the second quarter of 2017, citing excessive rainfall events around the country, unanticipated competitive pricing pressures, and a decline in average sales prices of products sold. On this news, Forterra’s stock fell approximately 57% to close at $3.51 per share on August 10, 2017.
Forterra Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, or you can complete the form below and we will contact you directly.