BOSTON, Nov. 13, 2014 /PRNewswire/ -- Block & Leviton LLP has filed a class action lawsuit against Rayonier Inc. ("Rayonier" or the "Company") (NYSE: RYN) following the Company's announcement that its financial results for the first and second quarters of 2014 were materially overstated. The lawsuit was filed in the U.S. District Court for the Middle District of Florida and is captioned Keasler v. Rayonier Inc., 14-1398. The lawsuit alleges that Defendants made materially false and misleading statements between April 29, 2014 and November 10, 2014 (the "Class Period").
On November 10, 2014, Rayonier announced that an internal investigation had determined that the Company incorrectly counted as merchantable inventory for 2014 timber which was located in restricted, environmentally sensitive or economically inaccessible areas. In response to these findings, the Company restated its financial results for the effected quarters because it had "understated its depletion expense in cost of goods sold … which resulted in a corresponding overstatement of income from continuing operations of $1.9 million and $2.0 million, respectively…." Likewise, the internal review found "a material weakness in the Company's internal controls related to merchantable timber inventory." In conjunction with these announcements, the Company also announced it was lowering its quarterly dividend.
Rayonier's stock price fell $2.71 per share on the day of the announcement, falling from $31.50 per share to close at $28.82. The next day, November 11, 2014, the negative market reaction continued, causing the Company's share price to trade as low as $26.19 per share, establishing a new 52-week low for Rayonier common stock.
If you purchased Rayonier securities during the Class Period and wish to serve as a lead plaintiff, you must move the Court no later than January 12, 2015. As a member of the class, you may seek to file a motion to serve as a lead plaintiff or take no action and remain an absent class member. If you have questions about your legal rights, would like a copy of the complaint or if you have information relevant to this lawsuit, please contact attorney Steven Harte of Block & Leviton LLP, www.blockesq.com, at (617) 398-5600 or at [email protected].
Confidentiality to whistleblowers or others with information relevant to the lawsuit is assured.
Contact: BLOCK & LEVITON LLP
Steven Harte, Esq.
SOURCE Block & Leviton LLP