NEW YORK, Aug. 16, 2017 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in TransDigm Group Incorporated ("TransDigm" or the "Company") (NYSE: TDG) of the October 10, 2017 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in TransDigm stock or options between May 10, 2016 and January 19, 2017 and would like to discuss your legal rights, click here: www.faruqilaw.com/TDG. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com.
FARUQI & FARUQI, LLP
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Attn: Richard Gonnello, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Northern District of Ohio on behalf of all those who purchased TransDigm securities between May 10, 2016 and January 19, 2017 (the "Class Period"). The case, City of Hollywood Firefighters' Pension Fund v. Transdigm Group, Inc. et al, No. 1:17-cv-01677 was filed on August 10, 2017, and has been assigned to Judge Donald C. Nugent.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) TransDigm's growth and profitability were artificially inflated due to its unlawful business practices; (2) the Company used exclusive distributors to make noncompetitive government bids seem competitive; (3) the Company's subsidiaries failed to list TransDigm as a parent entity when submitting government bids; and (4) as a result, TransDigm's statements regarding its business, operations, and prospects were false and misleading and/or lacked a reasonable basis.
Specifically, on January 20, 2017, Citron Research, a well-known short seller, issued a research report (the "Report") alleging TransDigm of being the "Valeant of the aerospace industry." The Report revealed, among other things, that the Company uses multiple shell distributors that have no pricing power to avoid detection by making government bids seem competitive. Further, the Report emphasized that TransDigm's growth was driven, in large part, by rampant acquisitions and extreme debt levels.
On this news, TransDigm's share price fell from $251.76 per share on January 19, 2017 to a closing price of $226.90 on January 20, 2017 —a $24.86 or a 9.87% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding TransDigm's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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