Case: In re Textron, Inc. Sec. Litig., No. 19-cv-7881 (DLC)
Court: United States District Court for the Southern District of New York
Class Period: January 31, 2018 - December 6, 2018
Attorneys: Frederic S. Fox, Donald R. Hall, Jeff P. Campisi, Melinda D. Campbell

Kaplan Fox is the court-appointed lead counsel representing lead plaintiff, IWA Forest Industry Pension Plan (“Plaintiff”), and the putative class in this securities class action against Textron, Inc. (“Textron” or the “Company”) and certain Textron executives (together with Textron, “Defendants”). Plaintiff alleges that Defendants made material misrepresentations and omissions during the Class Period concerning the integration of a recently acquired company, Arctic Cat, Inc. (“Arctic Cat”). Specifically, Plaintiff alleges that Defendants misrepresented the Company’s progress in clearing aged Arctic Cat inventory, integrating operations, and positioning Arctic Cat to be accretive to earnings in 2018. 

The truth about these matters was revealed in financial releases on October 18, 2018 and December 6, 2018, when the Company disclosed that third quarter 2018 revenue had declined substantially due to continued heavy discounting of Arctic Cat products, that the schedule for integrating and achieving profitability was a full year behind plan, and finally, that impairment charges of $45-55 million would be recorded for Arctic Cat. These disclosures caused Textron share prices to decline precipitously. 

The second amended complaint was filed on February 14, 2020. Defendants filed a motion to dismiss on March 6, 2020, and Plaintiff opposed on March 27, 2020. The motion will be fully briefed on April 10, 2020.