Evoqua Water Technologies Corp.'s (AQUA) Officers and Directors Accused of Misleading Investors About Company's Business Prospects

According to the complaint against the company's officers and directors for breaches of fiduciary duties between November 6, 2017 and October 30, 2018, Evoqua Water Technologies Corp. (AQUA)'s initial public offering ("IPO") documents touted the company had an experienced management team, emphasizing that it had expanded the company's operations to new target markets and had shown "successful acquisition and integration capabilities." The documents further noted the company's long-term growth potential.  On March 12, 2018, when Evoqua filed another registration statement in connection with a new offering, it again touted its "xperienced management team," which had "proven operational capabilities."

On October 30, 2018, Evoqua announced that its preliminary financial results for the fourth quarter and fiscal year ended September 30, 2018, fell below the company's expectations. Evoqua attributed the disappointing results to acqusition system integration issues and supply chain disruptions influenced by tariffs, which had not previously been disclosed.  On this news, Evoqua's stock plummeted over 34% to close at $9.02 per share on October 30, 2018.  Evoqua stock continues to trade significantly below its IPO price of $18.00.