SAN DIEGO–(BUSINESS WIRE)–Robbins Geller Rudman & Dowd LLP (https://www.rgrdlaw.com/cases-resideo-class-action-lawsuit.html) today announced that it has filed a class action on behalf of an institutional investor seeking to represent purchasers of Resideo Technologies, Inc. (NYSE:REZI) common stock during the period between October 29, 2018 and October 22, 2019 (the “Class Period”). This action was filed in the District of Minnesota and is captioned St. Clair County Employees’ Retirement System v. Resideo Technologies, Inc., et al., No. 19-cv-02863.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Resideo common stock during the Class Period to seek appointment as lead plaintiff in the Resideo class action lawsuit. A lead plaintiff acts on behalf of all other class members in directing the Resideo class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Resideo class action lawsuit. An investor’s ability to share in any potential future recovery of the Resideo class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff in the Resideo class action lawsuit, you must move the Court no later than 60 days from today. If you wish to discuss the Resideo class action lawsuit or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Shawn A. Williams of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. You can view a copy of the complaint as filed at https://www.rgrdlaw.com/cases-resideo-class-action-lawsuit.html.
The Resideo class action lawsuit charges Resideo and certain of its officers with violations of the Securities Exchange Act of 1934. Resideo purports to be a global provider of products, software, solutions, and technologies that help homeowners stay connected and in control of their comfort, security, and energy use. The Company also provides home heating, ventilation and air conditioning controls and security solutions and is a distributor of security and low-voltage electronic products. The Company was formed through a spin-off from Honeywell International Inc. on October 29, 2018. That same day, Resideo stock began trading on the NYSE under the ticker symbol “REZI,” opening at $28.00 per share.
The complaint alleges that during the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding Resideo’s business and prospects. Specifically, defendants failed to disclose that the negative operational effects of the spin-off were more substantial and persistent than disclosed and had negatively affected the Company’s product sales, supply chain, and gross margins, putting Resideo’s fiscal 2019 financial forecasts at risk, and that, as a consequence, the Company’s financial guidance lacked a reasonable basis and the Company was not on track to make its fiscal 2019 guidance as defendants had claimed. As a result of defendants’ material misrepresentations and omissions, Resideo stock traded at artificially inflated prices of more than $26 per share during the Class Period.
Then, on October 22, 2019, Resideo issued its preliminary financial results for the third quarter of 2019, announcing that it had missed revenue and earnings targets and was lowering its recently reaffirmed revenue outlook for fiscal 2019 by $80 million. Also on October 22, 2019, the Company announced that the Company’s CFO would be leaving as of November 6, 2019. Following these disclosures, Resideo’s stock price declined more than 40%, from a close of $15.23 per share on October 22, 2019 to a close of $9.50 per share on October 23, 2019.
The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For six consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry. Please visit http://www.rgrdlaw.com for more information.
Robbins Geller Rudman & Dowd LLP
Shawn A. Williams, 800-449-4900