Robbins Arroyo LLP: Supreme Industries, Inc. (STS) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against Supreme Industries, Inc. (NYSE MKT: STS) in the U.S. District Court for the Central District of California. The complaint is brought on behalf of all purchasers of Supreme securities between July 22, 2016 and October 21, 2016, for alleged violations of the Securities Exchange Act of 1934 by Supreme’s officers and directors. Supreme, through its subsidiary Supreme Corporation, manufactures and sells truck bodies, trolleys, and specialty vehicles in the United States.
Supreme Accused of Misrepresenting Backlog
According to the complaint, on July 22, 2016, Supreme officials discussed the company’s earnings for the second quarter of 2016 in a conference call. Matthew W. Long, the company’s Chief Financial Officer stated, “the backlog is going to settle more towards the way it looked Q3 last year.” The complaint alleges, however, that the statement was misleading because it failed to disclose that the backlog figure from the third quarter of 2015 was a result of the timing of several large orders placed in that quarter, and the backlog figure for the third quarter of 2016 would not be close to the backlog figure of the third quarter of 2015.
On October 21, 2016, Supreme issued a press release announcing that at the end of Q3 2016, order backlog was $58.1 million, down from the $74.4 million in order backlog at the end of Q3 2015. On the same day, the company held a conference call during which it discussed the decline in backlog, stating, “The lower back log comparison is due to two large fleet replacement orders and the timing of an annual fleet account order received during the third quarter of last year.” Later that day, Cliffside Research published a report noting heavy selling activity in 2016 by Supreme insiders with knowledge of the company’s struggling business. On this news, Supreme stock fell $2.38 per share, or over 17%, to close at $11.30 per share on October 24, 2016.
Supreme Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.
Send This Post