NEW YORK, Sept. 22, 2016 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in AECOM (the “Company”) (NYSE:ACM) of the October 31, 2016 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of all those who purchased AECOM common stock or options between February 11, 2015 and August 15, 2016 (the “Class Period”). The case, William Graves v. AECOM et al, No. 2:16-cv-06605 was filed on September 1, 2016, and has been assigned to Judge Karen L. Stevenson.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by overstating the benefits of the Company’s acquisition of URS Corp., as well as by misinterpreting the Company’s free cash flow per share.
Specifically, on August 16, 2016, Spruce Point Capital Management published a report on AECOM stating “that AECOM’s stock is worth approximately 33% - 45% less than its current price.” The report cited AECOM management’s “misaligned incentive structure,” pursuant to which the Company’s “CEO’s $18 million compensation in 2015 [was] heavily tied to its aggressive interpretation of its Free Cash Flow per share,” and asserted that the Company had misrepresented the costs and benefits of the URS Acquisition.
After the announcement, AECOM’s share price fell from $35.09 per share on August 15, 2016 to a closing price of $33.44 on August 16, 2016 —a $1.65 or a 4.70% drop.
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Take Action
If you invested in AECOM common stock or options between February 11, 2015 and August 15, 2016 and would like to discuss your legal rights, visit www.faruqilaw.com/ACM. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding AECOM’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class that is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
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