Pyxus International, Inc. (PYX) Accused of Misleading Shareholders
According to the complaint against the company for alleged violations of the Securities Exchange Act of 1934 between June 7, 2018 and November 8, 2018, Pyxus International, Inc. (PYX) made misleading positive statements about its business and operations. The truth was revealed on November 8, 2018, when Pyxus announced that its sales had declined approximately 12% year-over-year due to the timing of shipments and the larger crop in South America. On this news, Pyxus’ share price fell $7.02, or almost 28%, to close at $18.26 per share. The following day, the SEC announced that Pyxus had settled charges for materially misstating financial statements from 2011 to the second quarter of 2015 due to improper accounting, processes, and control activities for inventory, deferred crop costs, and revenue transactions in Africa. On this news, Pyxus’ stock fell nearly 16% to close at $15.38 per share, and has yet to recover.