SAN DIEGO & PLYMOUTH MEETING, Pa.–(BUSINESS WIRE)–lt;a href=”https://twitter.com/search?q=%24BV&src=ctag” target=”_blank”gt;$BVlt;/agt; lt;a href=”https://twitter.com/hashtag/ClassAction?src=hash” target=”_blank”gt;#ClassActionlt;/agt;–Shareholder rights law firm Robbins
Arroyo LLP announces that purchasers of BrightView Holdings, Inc.
(NYSE: BV) filed a class action complaint against the company for
alleged violations of the Securities and Exchange Act of 1933 pursuant
to the company’s July 2018 initial public offering (“IPO”). BrightView
provides commercial landscaping services in the U.S.
View this information on the law firm’s Shareholder Rights Blog: https://www.robbinsarroyo.com/brightview-holdings-may-19/
According to the complaint, BrightView held its IPO in July 2018,
offering its stock at $22.00 per share and generating over $501.2
million in proceeds based on offering documents that failed to disclose
that a material portion of BrightView’s contracts were underperforming
or represented undesirable costs to the company and that the company’s
exit strategy to end its non-profitable contracts would negatively
impact future revenue.
Just a month after the IPO, BrightView reported negative financial
results and disclosed for the first time that its Maintenance Services
revenue was negatively impacted by its Managed Exit strategy. On
November 27, 2018, BrightView disclosed that its Managed Exit strategy
would result in a decline in revenue of $10 million over the course of
fiscal year 2019. Then, on February 7, 2019, on a conference call with
investors, the company revealed that underperforming contracts accounted
for a $23.1 million drop in revenue for full year 2018, and it expected
a loss in revenue of over $25 million for 2019. BrightView’s disclosures
have caused the stock to steadily decline, and it now trades at around
$16.00 per share.
BrightView Holdings Shareholders Have Legal Options
Concerned shareholders who would like more information about their
rights and potential remedies can contact attorney Leo Kandinov at (800)
350-6003, [email protected],
or via the shareholder
information form on the firm’s website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder
rights law. The firm represents individual and institutional investors
in shareholder derivative and securities class action lawsuits, and has
helped its clients realize more than $1 billion of value for themselves
and the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a similar outcome.