On July 23, 2015, Polaris recalled its model-year 2016 Youth RZR off-highway vehicle, quoting fire hazards. Then there were three other recalls of Polaris' RZR vehicles—in October 2015, December 2015, and April 2016—affecting more than 160,000 RZR vehicles of various model years.
Despite the recalls, Polaris consistently guided investors that it expected full year 2016 net income to be at least $6.00 per diluted share. On January 26, 2016, Polaris announced its full-year guidance in the range of $6.20 to $6.80 per diluted share. On April 21, 2016, Polaris announced that it was maintaining its same guidance estimate. Later on July 20, 2016, On July 20, 2016, Polaris stated its earnings guidance for the full year 2016 of $6.00 to $6.30 per diluted share. On July 25, 2016, Polaris issued a stop-ride/stop-sale advisory, awaiting a formal recall for MY2016 RZR Turbo off-road vehicles for potential fire hazard.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, and failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Polaris was unable to sufficiently validate the initially identified repair for certain of its recalled RZR vehicles; (2) as a result, Polaris would ultimately need to implement a more complex and expensive repair solution; (3) the financial impact of RZR vehicle recalls was therefore greater than Polaris had disclosed to investors; (4) consequently, Polaris had overstated its full-year 2016 guidance; and (5) as a result of the foregoing, Polaris's public statements were materially false and misleading at all relevant times.
On September 12, 2016, Polaris restated and lessened its earnings guidance for the full year 2016 to $3.30 to $3.80 per diluted share. The reduced guidance is attributed to other RZR thermal-related problems and the effect of the stop ride/stop sale notification. Following this news, Polaris stock dropped $4.05 per share or over 5% to close at $76.79 per share on September 12, 2016.
No Class has yet been certified in the above action. To discuss this action, or for any questions, please visit the firm's site: http://www.bgandg.com/pii or contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email email@example.com. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. If you suffered a loss in Polaris, you have until November 15, 2016 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Bronstein, Gewirtz & Grossman, LLC
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