Company: Mueller Water Products, Inc.
Class Period: May 9, 2016 — August 6, 2018
Court: U.S.D.C. – Southern District of New York
Deadline: June 10, 2019
A shareholder class action complaint has been filed against Mueller Water Products, Inc. (“Mueller”) on behalf of investors who purchased shares of the Company’s stock between May 9, 2016 and August 6, 2018 (the “Class Period”).
The complaint alleges that the defendants made false and misleading statements and/or failed to disclose material adverse information to investors during the Class Period concerning the Company’s business, operations and prospects. Specifically, the defendants failed to disclose or indicate: (i) that the Company lacked adequate testing for product quality; (ii) that certain products with radio components were susceptible to fail prematurely; (iii) that, as a result, the Company was reasonably likely to incur increased expenses, including warranty costs; (iv) that these costs would materially impact the Company’s financial statements; (v) that the Company lacked adequate internal controls over warranty costs and estimates.
According to the complaint, on April 27, 2017, in connection with its second quarter 2017 financial results, the Company disclosed that certain of radio products produced between 2011 and 2014 had been failing prematurely, resulting in a $9.8 million warranty charge. Following this news, shares of the Company’s stock fell $1.43 per share, or over 11% in value, to close on April 28, 2017 at $11.25 per share.
Then, on August 6, 2018, in connection with its third quarter 2018 financial results, the Company reported a $14.1 million warranty charge. Following this news, shares of the Company’s stock fell $0.75 per share, or 6% in value, to close on August 7, 2018 at $11.58 per share.
Mueller stockholders are encouraged to contact Kaskela Law LLC for additional information about this action, and to discuss their legal rights and options.