Our attorneys are investigating claims on behalf of purchasers of Forterra, Inc. (NASDAQ: FRTA) common stock or securities, who allege that the IPO Registration Statement and Prospectus omitted material information from investors.
A class action lawsuit was filed on August 14, 2017 in the Eastern District of New York; Forterra investors are encouraged to contact the firm for more information about their legal rights.
Lawsuit Alleges Registration Statement Contained Inaccurate, Misleading Statements
Forterra manufactures pipe and various precast products. The class action complaint alleges that the Registration Statement, which Forterra used to conduct its IPO, contained inaccurate or misleading statements, and failed to disclose material facts, including:
- That organic sales in Forterra’s drainage and water segments significantly declined
- That Forterra was experiencing increased pricing pressure due to competition in its concrete and steel pipe business
- That Forterra had been losing business in its important pipe and precast business, due in large part to operational problems at its production plants
- That Forterra had undisclosed material weaknesses in its internal controls that prevented it from accurately reporting and forecasting its financial results
Forterra completed its initial public offering of common stock on October 21, 2016, selling 18.42 million shares at $18.00 per share, raising over $331 million in gross proceeds. Since then, the price of Forterra shares has plummeted by approximately 75% to close at $4.44 on August 14, 2017.
Our Reputation for Excellence
Girard Gibbs LLP is one of the nation’s leading firms representing individual and institutional investors in securities litigation to correct abusive corporate governance practices, breaches of fiduciary duty, and proxy violations. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and has earned Tier-1 rankings and been named in the U.S. Lawyers – Best Law Firms list for four consecutive years.
Share this on: