Robbins LLP: TransDigm Group, Inc. (TDG) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that a class action complaint was filed against TransDigm Group, Inc. (NYSE: TDG) in the U.S. District Court for the Northern District of Ohio. The complaint is brought on behalf of all purchasers of TransDigm securities between May 10, 2016 and January 19, 2017, for alleged violations of the Securities Exchange Act of 1934 by TransDigm’s officers and directors. TransDigm designs, produces, and supplies aircraft components in the United States.
TransDigm Accused of Engaging in Unfair Business Practices
According to the complaint, in a series of press releases, TransDigm reported an increase in net income, attributing it to sales growth, improvements to the company’s operating margin, productivity efforts, and a lower effective tax rate. However, the complaint alleges that TransDigm officials failed to disclose that the company’s growth and profitability were artificially inflated as a result of its illicit business practices, that the company used exclusive distributors to make noncompetitive government bids seem competitive, and that TransDigm subsidiaries failed to list TransDigm as a parent entity when submitting government bids. On January 20, 2017, Citron Research published a report accusing TransDigm of price gouging the U.S. government through a fraudulent and illegal scheme. On this news, TransDigm’s stock fell $24.86 per share, or 9.87%, to close at $226.90 per share on January 20, 2017.
TransDigm Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, or you can complete the form below and we will contact you directly.