Flex Ltd (NASDAQ: FLEX) Investor Securities Class Action Lawsuit 05/08/2018

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Company Name(s): 
Flex
Case Name: 
Flex Shareholder Class Action Lawsuit 05/08/2018
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: FLEX
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
05/08/2018
Class Period Begin: 
01/26/2017
Class Period End: 
04/26/2018
Court of Filing: 
U.S. District Court for the Northern District of California
Deadline To File for Lead: 
07/09/2018
Summary: 

July 9, 2018 - Lead plaintiff motions were filed.

May 8, 2018 - An investor in shares of Flex Ltd (NASDAQ: FLEX) filed a lawsuit in the U.S. District Court for the Northern District of California over alleged violations of Federal Securities Laws by Flex Ltd in connection with certain allegedly false and misleading statements made between January 26, 2017 and April 26, 2018.

Singapore based Flex Ltd provides design, engineering, manufacturing, and supply chain services and solutions to original equipment manufacturers worldwide. Flex Ltd reported that its Total Revenue declined from over $24.41 billion for the 12 months period that ended on March 31, 2016 to over $23.86 billion for the 12 months period that ended on March 31, 2017 and that its Net income over those respective time periods declined from $444.08 million to $319.56 million.

Shares of Flex Ltd (NASDAQ: FLEX) reached as high as $19.09 per share in March 2018.

On April 26, 2018, after the close of trading, Flex Ltd disclosed its fourth quarter and fiscal year-ended March 31, 2018 financial results.

Flex Ltd disclosed that the “Audit Committee of the Company's Board of Directors, with the assistance of independent outside counsel, is undertaking an independent investigation of allegations made by an employee including that the Company improperly accounted for obligations in a customer contract and certain related reserves. The independent outside counsel also notified the San Francisco office of the Securities and Exchange Commission of the allegations and that it will report the findings of the independent investigation upon its conclusion.”

“At this time, the Company is not aware of any issues under investigation that will materially affect the fourth quarter or fiscal year results, but the investigation is ongoing. The Company has also not yet determined whether the issues will impact previously reported periods and, if so, whether that impact will be material. The historic, fourth quarter, and fiscal year results disclosed in this release do not reflect the impact, if any, from the issues under investigation.”

On April 27, 2018, before the market opened it was reported that Flex Ltd shares “plunged 19% toward a 1 1/2-year low early Friday, to pace all the premarket decliners, after the contract manufacturer missed profit expectations, provided a downbeat outlook and said it was investigating allegations of improper accounting.” Shares of Flex Ltd (NASDAQ: FLEX) declined on April 27, 2018, to as low as $12.93 per share.

According to the complaint the plaintiff alleges on behalf of purchasers of Flex Ltd (NASDAQ: FLEX) common shares between January 26, 2017 and April 26, 2018, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between January 26, 2017 and April 26, 2018, the defendants failed to disclose that the Company’s internal controls over financial reporting were materially weak and deficient that the Company had improperly accounted for obligations in a customer contract and certain related reserves, and that, as a result of the foregoing, the Company’s financial statements and Defendants’ statements about Flex Ltd’s business, operations, and prospects, were materially false and misleading at all relevant times.