Company: Granite Construction Incorporated
A shareholder class action lawsuit has been filed against Granite Construction Incorporated (NYSE: GVA) (“Granite” or the “Company”) on behalf of investors who purchased the Company’s securities between October 26, 2018 and August 1, 2019, inclusive (the “Class Period”).
According to the complaint, on July 29, 2019, the Company disclosed that its second quarter 2019 financial results were negatively impacted by non-cash charges related to four legacy, unconsolidated heavy civil joint venture projects. As a result, Granite expected to report a net loss per diluted share in the range of $2.05 – $2.10 per share. On this news, the Company’s stock price fell $7.98 per share, or nearly 18%, to close at $36.49 per share on July 30, 2019, on unusually heavy trading volume.
Then, on August 2, 2019, the Company announced its second quarter 2019 financial results, reporting revenue of $789.5 million (including $114.2 million in revenue reduction due to the charges disclosed earlier that week). On this news, the Company’s stock price fell by an additional $2.78 per share, or over 8%, to close at $31.22 per share on August 2, 2019, again on unusually heavy trading volume.
Among other things, the shareholder class action complaint alleges that Granite issued a series of false and misleading statements during the Class Period, and failed to disclose to investors that: (i) the Company had assumed certain risks in connection with its heavy civil joint venture projects bid between 2012 and 2014; (ii) there was an “untenable” imbalance of risk sharing between the Company and the joint venture project owners; and (iii) as a result of the foregoing, the Company was reasonably likely to incur additional project costs for its joint venture projects.
Granite investors who purchased shares of the Comapny’s stock before October 26, 2018 are encouraged to contact Kaskela Law LLC at (888) 715 – 1740, or by completing the form on this page, to discuss this action and their legal rights and options.