Are you a former employee of Resideo Technologies, Inc. (REZI) and own stock in the company? Robbins LLP is investigating breaches of fiduciary duty by the officers and board of directors of REZI.
Resideo Technologies, Inc. (REZI) Accused of Misleading Shareholders
According to the complaint for alleged violations of the Securities Exchange Act of 1934 between October 10, 2018 and October 22, 2019, Resideo Technologies, Inc. touted its “bright future” and strong competitive position, stating that ” competitors are the ones that are concerned.” Additionally, Honeywell touted that following the spin-off Resideo would be the market leader in home heating, air conditioning controls, and security markets. In reality, despite the Companies’ positive representations, Resideo continued to compete with Honeywell in the sale of its products, losing much of its business to its former parent. Resideo also failed to disclose to investors that its Residential Thermal Solutions business was facing supply chain issues that were causing industry-wide declines. Then, on October 22, 2019, Resideo released preliminary financial results for the third quarter, surprising investors by announcing earnings that significantly missed estimates and the replacement of its CFO. On this news, the price of Resideo stock fell $5.73 per share, a decline of over 37%. The stock has yet to recover.