Apogee Enterprises, Inc. (APOG) Accused of Overestimating Its Ability to Take on the Tight Labor Market

According to the filed complaint against the company's officers and directors for alleged violations of the Securities Exchange Act of 1934 between June 28, 2018 and September 17, 2018, Apogee told investors that the company was positioned for long-term, stable earnings and cash flow growth. However, Apogee could not live up to its projections because it lacked the required labor force to ramp-up its production and was unable to hire and retain new employees. On September 18, 2018, Apogee issued disappointing financial results, citing increased labor costs, lower productivity, and higher cost of quality. Apogee's CEO then admitted that Apogee was never ready to meet the previously announced growth and margins and that the company was not prepared for the tight labor market. On this news, Apogee's stock fell over 13% to close at $41.76 per share on September 19, 2018, and has since continued to decline.

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