SAN DIEGO & MILWAUKEE, Wis.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of REV Group, Inc. (NYSE: REVG) filed a shareholder action against the company's officers and directors for alleged breaches of fiduciary duties pursuant to the company's January 27, 2017, initial public offering. REV designs, manufactures, and distributes specialty vehicles in the United States, Canada, Europe, Africa, the Middle East, and internationally.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/rev-group-inc-jan-2019/
REV Group Accused of Overestimating Margin Growth Potential
According to the complaint, REV represented that investors should expect continued margin growth, citing the company's efficient manufacturing facilities. Even though REV's facilities were not operating as effectively as the company represented, REV officials continued to make optimistic predictions about the company's business prospects. The truth began to emerge on March 7, 2018, when REV revealed that its margins and growth rates had declined, causing the company's stock price to fall 12% the following day. Then, on June 6, 2018, REV substantially cut its fiscal year earnings guidance while admitting that the company experienced lower-than-expected sales of certain product categories. Since REV began reporting dismal financial results, the company's stock has plummeted over 70% and currently trades at just over $8 per share.
REV Group Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, 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.
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