Robbins LLP: Aerojet Rocketdyne Holdings, Inc. (AJRD) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that a class action complaint was filed in the U.S. District Court for the Central District of California. The complaint alleges that officers and directors of Aerojet Rocketdyne Holdings, Inc. (NYSE: AJRD) violated the Securities Exchange Act of 1934 between October 15, 2013 and February 1, 2016, by making materially false and misleading statements about Aerojet’s business prospects. Aerojet Rocketdyne designs, develops, manufactures, and sells aerospace and defense products and systems in the United States.
Aerojet Rocketdyne Accused of Issuing Inaccurate Financial Information
According to the complaint, during 2013 through 2015, Aerojet filed several Form 10-Q’s and Form 10-K’s with the U.S. Securities and Exchange Commission (“SEC”) attesting to the accuracy of the financial statements and that all fraud was disclosed. The complaint alleges that these statements were misleading because Aerojet failed to disclose that: (i) the purchase accounting for contracts acquired as part of the acquisition of the Pratt & Whitney Rocketdyne division from United Technologies Corporation in the quarter ended August 31, 2013 was erroneous; (ii) the accounting for changes or modifications to one of the acquired Rocketdyne Business contracts were inaccurate; and (iii) as a result, the company’s statements about its business, operations, and prospects lacked a reasonable basis.
On February 1, 2016, the company filed a Form 8-K with the SEC disclosing that consolidated financial statements as of and for the fiscal years ended November 30, 2013 and 2014, and the consolidated financial statements as of and for the quarter ended August 31, 2013, and the consolidated financial statements as of and for the quarters ended February 28, May 31, and August 31, 2014 and 2015 should no longer be relied upon. On this news, Aerojet stock fell $0.56 per share, or over 3.6%, to close at $14.68 per share on February 2, 2016.
Aerojet Rocketdyne 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.