According to the complaint, AECOM, together with its subsidiaries, engages in designing, building, financing, and operating infrastructure assets worldwide. The company operates through three segments: Design and Consulting Services, Construction Services, and Management Services.
The complaint alleges that throughout the Class Period, the defendants made materially false and misleading statements regarding the company’s business, operational and compliance policies. Specifically, the complaint alleges that the defendants made false and/or misleading statements and/or failed to disclose that: (i) AECOM engaged in fraudulent and deceptive business practices (ii) AECOM lacked effective internal controls over financial reporting; (iii) AECOM overstated the benefits of the acquisition of URS Corp.; (iv) AECOM overstated the company’s free cash flow per share; and (v) as a result of the foregoing, AECOM’s public statements were materially false and misleading at all relevant times.
The Class Period commences on February 11, 2015, when AECOM filed a Quarterly Report on Form 10-Q with the SEC.
According to the complaint, on August 16, 2016, Spruce Point Capital Management published a report on AECOM (the “Spruce Point Report”), stating that “after a careful forensic financial and accounting analysis of AECOM’s recent financial results and condition, we believe that AECOM’s stock is worth approximately 33% - 45% less than its current price.” Among other issues, the Spruce Point Report cited AECOM management’s “misaligned incentive structure,” pursuant to which the company’s “CEO’s $18 million compensation in 2015 [was] heavily tied to its aggressive interpretation of its Free Cash Flow per share,” and asserted that the company had misrepresented the costs and benefits of the acquisition of URS Corp.
Following this news, AECOM stock fell $1.65, or 4.7%, to close at $33.44 on August 16, 2016.
If you are a member of the class described above, you may no later than October 31, 2016 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at email@example.com.
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq. or Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087 1-888-299-7706 (toll free) or 1-610-667-7706
Or by e-mail at firstname.lastname@example.org