Advanced Drainage Systems Inc (NYSE: WMS) Investor Securities Class Action Lawsuit 07/30/2015

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Company Name(s): 
Advanced Drainage Systems
Case Name: 
Advanced Drainage Systems Shareholder Class Action Lawsuit 07/30/2015
Case Status: 
Case Dismissed
Affected Securities
NYSE: WMS
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
07/29/2015
Class Period Begin: 
07/25/2014
Class Period End: 
03/29/2016
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 
09/28/2015
Case Dismissed: 
03/10/2017
Summary: 

March 10, 2017 - The court granted defendants' motion to dismiss and closed the case.

August 8, 2016 - Defendants filed a motion to dismiss.

April 28, 2016 - The lead plaintiff filed an amended complaint on behalf of investors who purchased Advanced Drainage Systems Inc (NYSE: WMS) common shares between July 25, 2014 and March 29, 2016. The lead plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between July 25, 2014 and March 29, 2016.

January 11, 2016 - Lead plaintiff and lead counsel were appointed.

September 28, 2015 - Lead plaintiff motion was filed.

July 29, 2015 - An investor in shares of Advanced Drainage Systems Inc (NYSE: WMS) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Advanced Drainage Systems Inc in connection with certain allegedly false and misleading statements made between September 5, 2014 and July 14, 2015.

According to the complaint the plaintiff alleges on behalf of purchasers of Advanced Drainage Systems Inc (NYSE: WMS) common shares between September 5, 2014 and July 14, 2015, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between September 5, 2014 and July 14, 2015, defendants issued materially false and misleading statements to investors and/or failed to disclose that Advanced Drainage Systems Inc’s inventory values and cost of sales were misstated, that Advanced Drainage Systems Inc’s transportation and equipment leases should be recorded as capital leases; and that as a result, Advanced Drainage Systems Inc’s financial statements were materially false and misleading at all relevant times.

Advanced Drainage Systems Inc reported that its Total Revenue rose from over $1.06 billion for the 12 months period that ended on March 31, 2014 to over $1.17 billion for the 12 months period that ended on March 31, 2015 and that its Net Income for those respective time periods increased from $11.12 million to $26.30 million. Shares of Advanced Drainage Systems Inc (NYSE: WMS) grew from $14.88 per share in August 2014 to as $33.03 per share in June 2015.

Then on July 15, 2015, Advanced Drainage Systems Inc announced the delay in filing of its 2015 annual report due to an ongoing review of the “methodologies utilized in its year-end inventory costing analysis and the related impact on the Company’s fiscal year 2015 financial statements.” Advanced Drainage Systems Inc further stated, that “the Company anticipates that the effect of this review will be a reduction of year-end inventory values for fiscal year 2015 as compared to previously reported amounts, and a related increase in cost of sales.” Shares of Advanced Drainage Systems Inc (NYSE: WMS) declined to as low as $27.98 per share on July 15, 2015, respectively $27.14 per share on July 27, 2015.