Adient plc (NYSE: ADNT) Investor Securities Class Action Lawsuit 10/04/2018

If you purchased shares of Adient plc (NYSE: ADNT), you have certain options and for certain investors are short and strict deadlines running. Deadline: December 3, 2018. NYSE: ADNT investors should contact the Shareholders Foundation, Inc.

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Company Name(s): 
Case Name: 
Adient Shareholder Class Action Lawsuit 10/04/2018
Case Status: 
Lawsuit Filed
Affected Securities
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
Class Period Begin: 
Class Period End: 
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 

An investor in shares of Adient plc (NYSE: ADNT) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Adient plc in connection with certain allegedly false and misleading statements made between October 31, 2016 and June 11, 2018.

According to the complaint the plaintiff alleges on behalf of purchasers of Adient plc (NYSE: ADNT) common shares between October 31, 2016 and June 11, 2018, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that from the date of its formation, Adient and certain of its senior executives highlighted improvements in the efficiency of the Company’s capital-intensive metals business (a/k/a the SS&M business) as a key driver of its success. For example, defendants repeatedly emphasized to investors that the Company was “solidly on track” to deliver 200-basis-point margin expansion by 2020, which was dependent in large part on operational and financial improvements in Adient’s core SS&M business. This statement and others were materially false and misleading, omitted information reasonable investors would consider important, and/or lacked a reasonable basis because, unbeknownst to investors, Adient’s core SS&M business faced significant operational problems such that the repeatedly touted 200-basis-point margin expansion was not “on track” at any point between October 31, 2016 and June 11, 2018, and that as a result of defendants’ false statements and/or omissions, Adient securities traded at artificially inflated prices between October 31, 2016 and June 11, 2018, with its share price reaching a high of $85.93 per share.

Adient plc reported that its Total Revenue declined from $16.79 billion for the 12 months period that ended on September 30, 2016 to $16.21 billion for the 12 months period that ended on September 30, 2017 and that its Net Loss of $1.54 billion turned into a Net Income of $877 million over those respective time periods.
On January 17, 2018, defendants disclosed that Adient’s “near-term results [were] being significantly impacted by SS&M.” Adient’s share price fell nearly 10% on this news. On January 29, 2018, Adient plc announced its financial results for Adient’s first quarter of 2018.
The plaintiff alleges that the defendants blamed the results on problems in the SS&M business, but stated that they were still committed to “deliver 200 basis points of consolidated adjusted EBIT margin improvement by the end of 2020” and were “examining the composition of these 200 basis points . . . . [I]f SS&M . . . is incapable of delivering the 100 to 200 basis points of improvement by 2020, we’ll look to execute other parts of – other things within the rest of our organization to offset the shortfall.” This news drove the price of Adient shares down $5.53 per share, or about 7.6%, to close at $66.77 per share. On May 3, 2018, defendants announced a $279 million net impairment charge related to the SS&M business and admitted that “the 200 basis points of margin expansion . . . is no longer going to be achievable.” On this news, Adient shares fell approximately 10%, to close at $55.84 per share.

On June 11, 2018, Adient announced that Chief Executive Officer R. Bruce McDonald is stepping down, and the company slashed its profit forecast for the year. Following this news, shares of Adient plunged more than 17% in early market trading. Shares of Adient plc (NYSE: ADNT) declined from $85.92 per share in October 2017 to as low as $47.03 per share on June 11, 2018.