San Diego, CA -- (ReleaseWire) -- 05/05/2014 -- An investor, who purchased shares of ADT Corp (NYSE:ADT), filed a lawsuit in the U.S. District Court for the Southern District of Florida over alleged violations of Federal Securities Laws by ADT Corp in connection with certain allegedly false and misleading statements made between November 27, 2012 and January 29, 2014.
If you purchased shares of ADT Corp (NYSE:ADT), you have certain options and for certain investors are short and strict deadlines running. Deadline: June 27, 2014. NYSE:ADT investors should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired securities of ADT Corp (NYSE:ADT) between November 27, 2012 and January 29, 2014 that ADT Corp and certain of its officers and directors violated Federal Securities Laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
More specifically, the plaintiff claims that the defendants between November 27, 2012 and January 29, 2014 disseminated allegedly false and misleading statements to the investing public about ADT Corp’s financial condition and future business prospects for fiscal 2013 and 2014, including representations concerning ADT Corp’s strong current financial condition and bullish forecasts of future financial results.
The plaintiff says that ADT Corp was experiencing reduced non-Pulse demand, accelerating churn rate and attrition, and increased advertising and service costs, all of which were negatively impacting ADT Corp’s recurring revenue, margins and earnings, such that the Company did not have a reasonable basis for its 2013 and 2014 quarterly and full-year financial forecasts and that as a result of defendants’ statements, ADT Corp‘s stock traded at allegedly artificially inflated prices between November 27, 2012 and January 29, 2014, trading as high as $49.73 per share on March 13, 2013
ADT Corp reported that its Total Revenue rose from over $2.59 billion for the 52 weeks period that ended on Sept. 24, 2010 to over $3.3 billion for the 52 weeks period that ended on Sept. 27, 2013 and that its respective Net Income increased from $239 million to $421 million. Shares of ADT Corp (NYSE:ADT) traded in early 2013 as high as $49.41 per share.
On November 25, 2013, ADT Corp announced that it has entered into an agreement to repurchase 10.24 million shares of ADT common stock beneficially owned by Corvex Management LP, at a purchase price of $44.01 per share. Shares of ADT Corp (NYSE:ADT) declined from $44.01 per share on November 22, 2013, to $38.14 per share on January 27, 2014.
Then on January 30, 2014, ADT Corp reported its first quarter 2014 results. Shares of ADT Corp (NYSE:ADT) declined from $38.09 per share on January 29, 2014, to $28.85 per share on February 3, 2014 and continued to decline to as low as $28.08 per share on March 14, 2014.
On May 1, 2014, NYSE:ADT shares closed at $30.07 per share.
Those who purchased shares of ADT Corp (NYSE:ADT), have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego