The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) informs investors that a securities class action lawsuit has been filed against Stanley Black & Decker, Inc. (“Stanley”) (NYSE: SWK). The action charges Stanley with violations of the federal securities laws, including omissions and fraudulent misrepresentations relating to the company’s business, operations, and prospects. As a result of Stanley’s materially misleading statements and omissions to the public, Stanley’s investors have suffered significant losses.
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LEAD PLAINTIFF DEADLINE: MAY 23, 2023
CLASS PERIOD: OCTOBER 28, 2021 THROUGH JULY 28, 2022
Kessler Topaz is one of the world’s foremost advocates in protecting the public against corporate fraud and other wrongdoing. Our securities fraud litigators are regularly recognized as leaders in the field individually and our firm is both feared and respected among the defense bar and the insurance bar. We are proud to have recovered billions of dollars for our clients and the classes of shareholders we represent.
STANLEY’S ALLEGED MISCONDUCT
On October 28, 2021, before the market opened, Stanley issued a press release reporting topline financial and operating results for the company’s third fiscal quarter of 2021. In the release, the company emphasized that “customer demand remains robust” which was driven, in part, “by our industry-leading innovation and strong professional demand.” Defendants falsely blamed a “universally difficult supply chain environment” and “inflationary trends” as the primary headwinds for Stanley’s growth.
Throughout the Class Period, Defendants repeatedly reassured investors that demand would remain high and that, should demand drop, Stanley would react accordingly. Additionally, while Defendants admitted that supply chain management and component sourcing was integral for Stanley to keep production in pace with demand in its core Tools and Outdoor business, Defendants misrepresented to investors throughout the Class Period that they were closely monitoring the effects of inflation and price increases on consumer demand, and that Defendants would react accordingly if the demand environment changed. Contrary to Defendants’ statements touting the heightened consumer demand and their ability to react accordingly to any effects of inflation or price increases on said demand, Stanley was incapable of nimbly responding to serious headwinds that indicated the pandemic demand bubble was soon to pop. Furthermore, Defendants knew that their statements were false and misleading as they admittedly tracked Stanley’s point-of-sale results to monitor demand.
The truth began to be revealed on the morning of April 28, 2022, when Stanley filed a Form 10-Q with the SEC detailing the company's financial and operating results for the first fiscal quarter ended April 2, 2022. Stanley disclosed in the Form 10-Q that net sales for the company's first quarter were "partially offset by a 6% … decrease from volume," revealing that demand was slowing. Following this news, the price of Stanley’s stock declined by $12.01 per share, to close at $127.13 on April 28, 2022.
Then, on July 28, 2022, before the market opened, Stanley issued a press release reporting the company's financial and operational results for the second quarter 2022 ended July 2, 2022. In the release, Stanley indicated that "the macroeconomic environment—including inflation, rising interest rates and significantly slower demand in late May and June—drove the majority of the challenges we faced this quarter," that "the softening of the demand environment accelerated rapidly during the last portion of the quarter." Following this news, Stanley’s stock price declined $18.87, or more than 16%, to close at $98.58 per share on July 28, 2022.
WHAT CAN I DO?
Stanley investors may, no later than May 23, 2023, move the Court to serve as lead plaintiff for the class, through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. Kessler Topaz Meltzer & Check, LLP encourages Stanley investors who have suffered significant losses to contact the firm directly to acquire more information. The class action complaint against Stanley, captioned Rammohan v. Stanley Black & Decker, Inc., et al., and docketed under 23-cv-00369, is filed in the United States District Court for District of Connecticut before the Honorable Kari Anne Dooley.
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WHO CAN BE A LEAD PLAINTIFF?
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country and around the world. The firm has developed a global reputation for excellence and has recovered billions of dollars for victims of fraud and other corporate misconduct. All of our work is driven by a common goal: to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by businesses and fiduciaries. The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.