Textron Inc. Former Employee Investigations
Investigation on behalf of former and current employees of Textron Inc. (Public, NYSE:TXT) concerning potential Employee Retirement Income Security Act (“ERISA”) Breach of Fiduciary Duty were announced.
Textron Inc faces a securities class action lawsuit over alleged violations of Federal Securities Laws on behalf of Textron Inc. (NYSE:TXT) securities between July 17, 2007 and January 29, 2009. An investor in Textron Inc. (Public, NYSE:TXT) shares has filed a proposed securities class action lawsuit in the United States District Court for the District of Rhode Island against Textron Inc and others over alleged violations of Federal Securities Laws.
According to the complaint the plaintiff alleges that Textron Inc and certain of its officers and directors violated the Securities Exchange Act of 1934 by issuing between July 17, 2007 and January 29, 2009 materially false and misleading statements concerning Textron Inc’s stability and profitability by repeatedly publicizing record “backlogs” of unfilled customer orders for aircraft generated primarily by Cessna and by making positive statements about its finance segment. Then on January 29, 2009 Textron Inc announced that an estimated $30 million of the $65 million in “restructuring” costs would be incurred by the its Cessna segment due to production cutbacks and worker layoffs planned for the first quarter of 2009. After this announcement, Textron Inc common stock(NYSE:TXT) traded to a new low of $8.83 per share before closing at $9.05 per share on volume of more than 26 million shares, a one day decline of $4.19, or 31%.
Textron Inc., located in Providence, RI, is a multi-industry company with a global network of aircraft, defense, industrial and finance businesses to provide customers with solutions and services around the globe. Textron Inc. (Public, NYSE:TXT) reported in 2007 Total Revenue of $12.615billion with a Net Income of $917million and in 2008 Total Revenue of $14.246billion with a Net Income of $486million. Shares of Textron, Inc. (NYSE: TXT) traded at $14.79 per share, down from a 52weekHigh of $43.06 per share and $73.38 per share in 2007.