Lexmark International, Inc
Robbins Arroyo LLP: Lexmark International, Inc. (LXK) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against Lexmark International, Inc. (formerly NYSE: LXK) in the U.S. District Court for the Southern District of New York. The complaint is brought on behalf of all purchasers of Lexmark securities between August 1, 2014 and July 20, 2015, for alleged violations of the Securities Exchange Act of 1934 by Lexmark’s officers and directors. Lexmark manufactures printers and related supplies.
Lexmark Accused of Hiding Inventory Buildup
According to the complaint, Lexmark officials projected strong operational performance and profitability for the company in 2015, stating, “We feel very good about the trajectory of our supplies business.” Lexmark failed to disclose that end-user demand and growth for the company’s supplies business was deteriorating and that customers in the supplies channel were buying ahead of anticipated pricing increases, causing Lexmark to incur excessive inventory levels. On July 21, 2015, Lexmark reported poor results for its second quarter of 2015 and lowered its 2015 sales guidance, citing lower-than-expected supplies revenue from its European wholesale distributors. Lexmark subsequently acknowledged an inventory build-up because of decreased sales when Lexmark increased supplies prices for its distributors. On this news, Lexmark’s stock dropped $9.57 per share, or approximately 20%, to close at $37.75 per share on July 21, 2015.
Lexmark 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.