RADNOR, Pa., May 7, 2019 /PRNewswire/ -- The law firm of Kessler Topaz Meltzer & Check, LLP alerts investors that a securities fraud class action lawsuit has been filed against BrightView Holdings, Inc. (NYSE: BV) ("BrightView") on behalf of those who purchased or otherwise acquired BrightView common stock pursuant and/or traceable to the initial public offering completed on or around July 2, 2018 (the "IPO").
Investors who purchased BrightView securities pursuant and/or traceable to the IPO may, no later than June 14, 2019, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation please visit www.ktmc.com/brightview-bv-securities-class-action.
According to the complaint, BrightView provides commercial landscaping services in the United States, operating through two segments: Maintenance Services and Development Services. On July 2, 2018, BrightView completed its IPO. The shares sold in the offering were registered pursuant to BrightView's Registration Statement on a Form S-1 (the "Registration Statement"), which was declared effective by the SEC on June 27, 2018. BrightView additionally filed its final prospectus dated June 27, 2018 on a Form 424B4 with the SEC on June 29, 2018 (the "Prospectus"). The Registration Statement and Prospectus are collectively referred to as the "Offering Documents."
The complaint alleges that, on August 8, 2018, after market-close, BrightView issued a press release announcing its financial and operating results for the third quarter of 2018. Despite reporting "strong third quarter results" and "record revenues," BrightView reported that "[r]evenues from the Development Services segment declined 5.7%" compared to the prior year "due to winding down production on certain large projects that reached substantial completion during the quarter, coupled with the timing of commencing work on new projects." Then, on August 9, 2018, BrightView filed its quarterly report for the same period with the SEC, reiterating the results previously announced in its earlier press release. Therein, BrightView disclosed that its Maintenance Services revenue was negatively impacted by its "Managed Exit" strategy. The Managed Exit strategy was BrightView's purported corporate strategy to allow certain "underperforming contracts" to expire upon maturity or renegotiate the contracts to provide BrightView with more favorable terms. Following this news, BrightView's common stock price fell $2.30 per share, or over 10%, to close at $19.90 per share on August 9, 2018.
On February 7, 2019, BrightView issued a press release announcing its financial and operating results for the first quarter 2019. The press release attributed BrightView's disappointing financial and operating results to, inter alia, its "strategic Managed Exit initiative and other operating conditions." Additionally, in its quarterly report filed with the SEC that same day, BrightView advised investors that the underperforming contracts part of the Managed Exit strategy accounted for a year-over-year quarterly decline of $10.8 million in landscape services revenues. Following this news, BrightView's common stock price declined $1.51 per share, or over 10%, to close at $13.23 per share on February 7, 2019, representing a decline of nearly 40% from the IPO price.
The complaint alleges that the defendants made materially false and misleading statements in the Offering Documents and/or failed to disclose that: (i) a material portion of BrightView's contracts were underperforming and/or represented undesirable costs to BrightView; (ii) as a result of the foregoing, BrightView would implement a "Managed Exit" strategy to end its low margin and non-profitable contracts with customers; (iii) this "Managed Exit" strategy would negatively impact BrightView's future revenue throughout 2018, and would continue to do so well into fiscal year 2019; and (iv) as a result, the Offering Documents were materially false and/or misleading and failed to state information required to be stated therein.
BrightView investors who wish to discuss this securities fraud class action lawsuit and their legal options are encouraged to contact Kessler Topaz Meltzer & Check, LLP (James Maro, Jr., Esq. or Adrienne Bell, Esq.) at (888) 299-7706 (toll free) or at email@example.com.
BrightView investors may, no later than June 14, 2019, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
(888) 299-7706 (toll free)
SOURCE Kessler Topaz Meltzer & Check, LLP