SAN FRANCISCO, Oct. 26, 2016 /PRNewswire/ -- Hagens Berman Sobol Shapiro LLP alerts investors in Supreme Industries Inc. (NYSE: STS) to the firm's investigation of possible securities law violations by the Company and certain senior executives.
If you purchased or otherwise acquired securities of STS before October 21, 2016 and suffered over $50,000 in losses, or have relevant information to the investigation, contact Hagens Berman Sobol Shapiro LLP. For more information visit:
or contact Reed Kathrein, who is leading the firm's investigation, by calling 510-725-3000 or emailing STS@hbsslaw.com.
On October 21, 2016 the price of Supreme Industries shares plummeted by approximately 24% to close at $13.68 per share when the Company disclosed its third quarter backlog of truck sales declined 22% from third quarter 2015.
After stating on an October 23, 2015 earnings conference call that, "[a]s a result of the strong order activity, our order backlog at the end of the third quarter was $74.4 million, which is 47% higher as compared to the third quarter of 2014," STS represented on July 22, 2016 that third quarter 2016 backlog "would settle" similarly to the impressive third quarter 2015 results.
However, on October 21, 2016, management revealed for the first time that the large 2015 backlog was the result of "two large fleet replacement orders and the timing of an annual fleet account order received during the third quarter of last year."
On October 22, 2016, Cliffside Research published a report focusing on the unexpected third quarter backlog decline of 22% year-over-year and heavy insider selling during 2016. "Heavy insider selling in STS is a canary in the coalmine that should not be ignored," the note said.
"STS management knew Q3 2015 backlog was highly unusual and would not be repeated," said Hagens Berman partner Reed Kathrein. "Their unusual insider trading calls this out."
Whistleblowers: Persons with non-public information regarding Supreme Industries should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email STS@hbsslaw.com.
About Hagens Berman
Hagens Berman is a national investor-rights law firm headquartered in Seattle, Washington with offices in 10 cities. The Firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the Firm and its successes can be found at www.hbsslaw.com. Read the Firm's Securities Newsletter, and visit the blog. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
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SOURCE Hagens Berman Sobol Shapiro LLP