NEW YORK, July 22, 2015 /PRNewswire/ -- Attorney Advertising-- Bronstein, Gewirtz & Grossman, LLC reminds investors that a securities class action has been filed in the United States District Court for the Central District of California on behalf of those who purchased shares of Toshiba Corporation. ("Toshiba" or the "Company") (OTC: TOSYY, TOSBF), during the period between May 8, 2012 and May 7, 2015 inclusive. (the "Class Period").
The Complaint alleges that throughout the Class Period, Defendants issued materially false and misleading statements about the Company's business, future revenues, operating results and financial prospects. Specifically, Defendants made false and/ or misleading statements and/or failed to disclose that: the company misled investors regarding the total amounts of costs for certain infrastructure projects; thereby manipulating the profits and losses for these infrastructure projects as well as misguiding investors regarding the timing in which such contract losses and provisions for contract losses were recorded; as a result, Toshiba's financial statements were materially false and misleading at all relevant times.
On April 3, 2015, Toshiba issued a press release announcing the establishment of a special investigation committee concerning the accounting of certain infrastructure projects.
On this adverse news, shares of TOSYY fell $1.23 per share, or over 4%, from its previous closing price to close at $24.56 per share on April 6, 2015, and shares of TOSBF fell $0.16 per share or over 3% from its previous closing price to close at $4.13 per share on April 6, 2015.
On May 8, 2015, Toshiba issued a press release announcing the establishment of an independent investigation committee concerning the accounting of certain infrastructure projects and the possible revision of earnings for prior years.
On May 10, 2015, BARRON'S ASIA published a report which stated that Toshiba "[f]ell 16.7% this morning on Tokyo after the electronics maker launched an accounting probe into its infrastructure business division and withdrew its 2014 earnings forecast. Toshiba also said it would not pay dividend this year."
Until now, the accounting investigation has focused on power systems, social infrastructure and community solution units in Japan and overseas. "Several construction projects have understated costs," according to a spokesperson from Toshiba. "Toshiba earned about 11% of its operating income from its power and social infrastructure business in 2013."
On this news, shares of TOSYY fell $5.75 per share, or over 23%, over the next two days to close at $18.33 per share on May 11, 2015 and shares of TOSBF fell $0.88 per share or over 22% over the next two days to close at $3.09 per share on May 11, 2015.
Then on July 21, 2015, Toshiba's CEO Hisao Tanaka and eight other executives resigned, and acknowledged a cover up that began in 2008. Those resigning took responsibility for doctored books that inflated profits by $1.2 billion over several years.
No Class has yet been certified in the above action. If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact Peretz Bronstein, Esq. or his Investor Relations Coordinator Eitan Kimelman of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email [email protected]. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. If you suffered a loss in Toshiba you have until August 3, 2015 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
Peretz Bronstein or Eitan Kimelman 212-697-6484
SOURCE Bronstein, Gewirtz & Grossman, LLC