Robbins LLP Announces Terex Corporation (TEX) Securities Class Action Survives Motion to Dismiss
Investors filed a class action complaint against Terex for alleged violations of the Securities Exchange Act of 1934. According to the complaint, Terex used improper accounting practices and falsely touted the company’s business prospects in order to disguise dramatically declining demand for its products. Specifically, Terex prematurely recognized revenue in connection with product sales by moving its products to off-site locations and reporting them as sold, even though they were not being sent to customers. Terex’s attempts to boost sales, meet market expectations, and maintain unrealistic financial projections were in vain, as the company eventually admitted a significant net loss and massive goodwill impairment charges. On March 31, 2018, U.S. District Judge Robert N. Chatigny denied in part defendants’ motion to dismiss plaintiff’s complaint, paving the way for litigation to proceed.
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