Company: Dycom Industries, Inc.
A shareholder class action lawsuit has been filed against Dycom Industries, Inc. (NYSE: DY) (“Dycom” or the “Company”) on behalf of purchasers of the Company’s common stock between November 20, 2017 and August 10, 2018, inclusive (the “Class Period”).
As detailed in the complaint, on May 22, 2018, Dycom’s CEO disclosed that the Company did not have enough work in hand to absorb the costs it had already incurred associated with its new large projects, mainly because Dycom was facing great uncertainties related to permitting issues. Following this news, shares of Dycom’s common stock declined $23.56, or over 20%, to close on May 22, 2018 at $92.64 per share.
Then, on August 13, 2018, Dycom announced disappointing quarterly financial results and reduced its financial guidance. Following this additional news, shares of Dycom’s common stock dropped $21.62 per share, or over 24%, to close on August 13, 2018 at $68.09 per share.
The class action complaint alleges that defendants made materially false and misleading statements during the Class Period, and failed to disclose to investors that: (i) Dycom’s new large projects were highly dependent on permitting and tactical considerations, (ii) Dycom was facing great uncertainties related to permitting issues; and (iii) those uncertainties would expose Dycom to near-term margin pressure and absorption issues. The complaint further alleges that, as a result of the foregoing, investors purchased Dycom’s common stock at artificially inflated prices during the Class Period and suffered investment losses as a result of defendants’ conduct.
Dycom stockholders who purchased shares of the Company’s stock prior to August 10, 2018 are encouraged to contact the firm to discuss their legal rights and potential recovery options.