Mueller Water Products, Inc. (MWA) Accused of Misleading Investors Regarding Product Quality
A shareholder has sued Mueller Water Products, Inc. (NYSE:MWA) for alleged violations of the Securities Exchange Act of 1934 between May 9, 2016 and August 6, 2018. The complaint alleges that in connection with its second quarter 2017 financial results, Mueller disclosed that its radio products produced between 2011 and 2014 had been failing prematurely, resulting in a $9.8 million warranty charge. On this news, Mueller’s share price fell more than 11% to close at $11.25 per share on April 28, 2017. Then, on August 6, 2018, in connection with its third quarter 2018 financial results, the Company reported a $14.1 million warranty charge. On this news, Muellers’s share price fell 6% to close at $11.58 per share on August 7, 2018, and continues to trade below the class period high.