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NEW YORK, March 14, 2019 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Revolution Lighting Technologies, Inc. (“Revolution Lighting” or the “Company”) (NASDAQ: RVLT) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, and indexed under 19-cv-02308, is on behalf of a class consisting of all persons other than Defendants who purchased or otherwise acquired Revolution Lighting securities between March 14, 2014, and November 14, 2018, inclusive (the “Class Period”), seeking to pursue remedies under the Securities Exchange Act of 1934 (the “Exchange Act”).
If you are a shareholder who purchased Revolution Lighting securities between March 14, 2014, and November 14, 2018, both dates inclusive, you have until April 1, 2019, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
Revolution Lighting purports to design and manufacture light-emitting diode (“LED”) lighting solutions for industrial, commercial, and government markets.
The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Revolution Lighting was improperly recognizing revenue for certain transactions; (ii) as a result, Revolution Lighting’s financial statements were misstated; (iii) Revolution Lighting lacked adequate internal controls over financial reporting; (iv) as a result, Revolution Lighting would be subject to regulatory scrutiny and incur substantial costs; and (v) as a result of the foregoing, Defendants’ positive statements about Revolution Lighting’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On October 17, 2018, Revolution Lighting reported preliminary financial results for third quarter 2018, with revenue expected to be $33 million, compared to guidance of $40-$41 million. Revolution Lighting also announced that Defendant Robert V. LaPenta (“LaPenta”), its Chief Executive Officer (“CEO”), had offered to acquire all of the common stock of the Company for a price of $2.00 per share.
On this news, Revolution Lighting’s stock price fell $0.98 per share, or over 38%, to close at $1.58 per share on October 17, 2018, on unusually heavy trading volume.11
On October 19, 2018, Revolution Lighting disclosed “an ongoing investigation by the SEC regarding certain revenue recognition practices, including bill and hold transactions that occurred between 2014 through the second quarter of 2018.”
On this news, Revolution Lighting’s stock price fell $0.16 per share, or over 10%, to close at $1.43 per share on October 22, 2018, on unusually heavy trading volume.
Then, on November 14, 2018, Revolution Lighting announced that its Transaction Committee was considering an updated proposal from LaPenta to acquire all of the Company’s outstanding stock for $1.50 per share, referring in part to the Securities and Exchange Commission investigation as part of the reason LaPenta wished to take Revolution Lighting private.
On this news, Revolution Lighting’s stock price fell $0.55 per share, or nearly 40%, to close at $0.85 per share on November 15, 2018, on unusually heavy trading volume.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby