NEW YORK, April 15, 2020 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that class actions have been commenced on behalf of stockholders of Southwest Airlines Co. (NYSE: LUV), Tupperware Brands Corporation (NYSE: TUP), Becton, Dickinson and Company (NYSE: BDX), and Aaron’s, Inc. (NYSE: AAN). Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link provided.
Southwest Airlines Co. (NYSE: LUV)
Class Period: February 7, 2017 to June 25, 2019
Lead Plaintiff Deadline: April 20, 2020
The complaint, filed on February 19, 2020, alleges that throughout the Class Period defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (i) Southwest’s operations were non-compliant with government maintenance and safety regulations; (ii) the foregoing issues were exacerbated by Southwest’s undue influence over FAA officials and, consequently, lax regulatory oversight of the Company’s operations; (iii) all of the foregoing significantly increased the safety risks to passengers traveling on Southwest flights and heightened governmental scrutiny into the Company; and (iv) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On April 17, 2018, news sources reported that a Southwest plane had blown an engine, which exploded and caused shrapnel to strike the plane. The explosion resulted in the death of one passenger, who was partially pulled through a large hole as the cabin suffered rapid decompression, and injured seven others. According to the Chairman of the National Transportation Safety Board, the incident marked “the first passenger fatality in a U.S. airline accident since 2009,” and that, out of twenty-four fan blades in the engine at issue, one was missing.
On this news, Southwest’s stock price fell $0.62 per share, or 1.13%, to close at $54.27 per share on April 17, 2018.
On April 19, 2018, the FAA announced that it would “order inspections of at least 220 aircraft engines as investigators are focusing on a broken fan blade in an engine that exploded.” According to news sources, the order was initially proposed in August 2016, following the earlier incident in which engine failure had also resulted from a broken fan blade. Critics also reportedly questioned why the FAA had not acted sooner in conjunction with their European counterparts.
On this news, Southwest’s stock price fell $1.02 per share, or 1.83%, to close at $54.80 per share on April 19, 2018.
On June 21, 2018, news sources reported that eight passengers were suing Southwest in connection with the engine explosion in April 2018.
On this news, Southwest’s stock price fell $1.24 per share, or 2.33%, to close at $51.91 per share on June 22, 2018.
Finally, on June 25, 2019, the Wall Street Journal published an article entitled “FAA Reassigns Senior Managers in Office Overseeing Southwest Airlines,” which reported that the FAA had “removed three senior managers in the office overseeing Southwest Airlines Co., amid allegations of lax safety enforcement raised by agency whistleblowers and various resulting government inquiries.” The article also noted that “[t]he [DOT]’s inspector-general has been looking into some of the safety issues for many months . . . including lapses by the airline in documenting maintenance for more than 100 of its jets,” as well as “failures to reliably compute the weight of checked baggage and hazardous landing incidents in which one aircraft smacked a wingtip on the tarmac and another ran off the strip in stormy weather.”
On this news, Southwest’s stock price fell $0.30 per share, or 0.59%, to close at $50.70 per share on June 26, 2019.
For more information on the Southwest Airlines class action go to: https://bespc.com/luv
Tupperware Brands Corporation (NYSE: TUP)
Class Period: January 30, 2019 to February 24, 2020
Lead Plaintiff Deadline: April 27, 2020
On February 24, 2020, Tupperware issued a press release reporting preliminary fiscal 2019 financial and operational results. Therein, the Company disclosed, among other things, that it was “conducting an investigation primarily into the accounting for accounts payable and accrued liabilities at its Fuller Mexico beauty business to determine the extent to which these matters may further impact results and to assess and enhance the effectiveness of internal controls at this business.” The Company further disclosed that “total impairments for Fuller Mexico are expected to be approximately $31 million. The total pre-tax impact for 2019 is approximately $50-52 million.”
On this news, Tupperware’s share price declined $2.61 per share, or over 46%, to close at $3.11 per share on February 25, 2020.
The complaint, filed on February 25, 2020, alleges that throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (1) Tupperware lacked effective internal controls; (2) as a result, Tupperware would need to investigate Fuller Mexico’s accounting and liabilities; (3) consequently, Tupperware would be unable to timely file its annual report on Form 10-K for its fiscal year 2019; (4) Tupperware did not properly account for its accounts payable and accrued liabilities at Fuller Mexico; (5) Tupperware provided overvalued earnings per share guidance; (6) Tupperware would need relief from its $650 million Credit Agreement; and (7) as a result, defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
For more information on the Tupperware class action go to: https://bespc.com/TUP
Becton, Dickinson and Company (NYSE: BDX)
Class Period: November 5, 2019 to February 5, 2020
Lead Plaintiff Deadline: April 27, 2020
Becton purports to be a medical technology company that develops, manufactures, and sells a broad range of medical supplies, devices, laboratory equipment and diagnostic products. It has three business segments: BD Medical; BD Life Sciences, and BD Interventional. The Company’s Alaris pump is a large volume infusion pump that continuously or intermittently delivers fluids, medications, blood and blood products to adult, pediatric or neonatal patients.
On February 6, 2020, Becton lowered its fiscal 2020 guidance, announcing that it expected revenue to increase by only 1.5 to 2.5 percent, “to reflect the impact of the remediation effort and anticipated loss of sales of the Alaris infusion system.” According to the Company, the software remediation plan for the Alaris system “will require additional regulatory filings,” and existing customers would have “access to the Alaris System under medical necessity.” Becton further disclosed that it had recorded a $59 million charge in connection with a voluntary recall of certain Alaris pumps.
On this news, Becton’s share price fell $33.74, or nearly 12%, to close at $252.25 per share on February 6, 2020.
The complaint, filed on February 27, 2020, alleges that throughout the Class Period defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, defendants failed to disclose to investors: (1) that certain of Becton’s Alaris infusion pumps experienced software errors and alarm prioritization issues; (2) that, as a result, the Company was investing in remediation efforts to address these product issues, rather than a software upgrade to “make enhancements;” (3) that the Company was reasonably likely to face regulatory delays in connection with the software remediation; (4) that, as a result of the foregoing, Becton was reasonably likely to recall certain of its Alaris infusion pumps; and (5) that, as a result of the foregoing, defendants’ positive statements about the Company’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis.
For more information on the Becton class action go to: https://bespc.com/bdx
Aaron’s, Inc. (NYSE: AAN)
Class Period: March 2, 2018 and February 19, 2020
Lead Plaintiff Deadline: April 28, 2020
On July 26, 2018, Aaron’s filed a Quarterly Report on Form 10-Q with the Securities and Exchange Commission (“SEC”), reporting the Company’s financial and operating results for the fiscal quarter ended June 30, 2018. That Quarterly Report disclosed that, in July 2018, Aaron’s received civil investigative demands (“CIDs”) from the Federal Trade Commission (“FTC”) requesting the production of documents and answers to written questions to determine whether disclosures related to financial products offered by the Company through its AB and Progressive segments were in violation of the FTC Act.
On this news, Aaron’s stock price fell $5.38 per share, or 11.01%, to close at $43.47 per share on July 27, 2018.
On April 25, 2019, Aaron’s filed another Quarterly Report on Form 10-Q with the SEC, reporting the Company’s financial and operating results for the fiscal quarter ended March 31, 2019. That Quarterly Report disclosed that, in April 2019, Aaron’s AB segment “received an unrelated CID from the FTC focused on certain transactions involving the purchase and sale of customer lease agreements, and whether such transactions violated the FTC Act.”
Then, on February 20, 2020, Aaron’s issued a press release announcing the Company’s financial results for the quarter and year ended December 31, 2019. Among other results, Aaron’s reported that the Company’s Progressive segment had reached an agreement in principle with FTC staff regarding the CID from the FTC that Progressive received in July 2018. Aaron’s advised investors that “[u]nder the proposed agreement, which requires final approval by FTC Commissioners and the U.S. District Court for the Northern District of Georgia, Progressive will make a payment of $175 million and enhance certain compliance-related activities, including monitoring, disclosure and reporting requirements.”
On this news, Aaron’s stock price fell $10.70 per share, or 19.06%, to close at $45.45 per share on February 20, 2020.
The Complaint, filed on February 28, 2020, alleges that throughout the Class Period defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, defendants made false and/or misleading statements and/or failed to disclose: (i) that Aaron’s had inadequate disclosure controls, procedures, and compliance measures; (ii) that, consequently, the operations of Aaron’s Progressive and AB segments were in violation of the FTC Act and/or relevant FTC regulations; (iii) that, consequently, Aaron’s earnings from those segments were partially derived from unlawful business practices and were thus unsustainable; (iv) the full extent of Aaron’s liability regarding the FTC’s investigation into its Progressive and AB segments, Aaron’s noncompliance with the FTC Act, and the likely negative consequences of all the foregoing on the Company’s financial results; and (v) that, as a result, the Company’s public statements were materially false and misleading at all relevant times.
For more information on the Aaron’s class action go to: https://bespc.com/AAN-2
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Melissa Fortunato, Esq.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com