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Kessler Topaz Meltzer & Check, LLP: Investor Class Action Filed Against BrighView Holdings, Inc. for Securities Fraud Violations

Notice is hereby given that a class action lawsuit has been filed on behalf of those who purchased or otherwise acquired BrightView Holdings, Inc. (“Bright View”) (NYSE: BV) common stock pursuant and/or traceable to the initial public offering completed on or around July 2, 2018 (the “IPO”).

BrightView investors may receive additional information about the case by clicking the link "Submit Your Information" above.

According to the complaint, BrightView provides commercial landscaping services in the United States, operating through two segments: Maintenance Services and Development Services.  On July 2, 2018, BrightView completed its IPO. The shares sold in the offering were registered pursuant to BrightView’s Registration Statement on a Form S-1 (the “Registration Statement”), which was declared effective by the SEC on June 27, 2018. BrightView additionally filed its final prospectus dated June 27, 2018 on a Form 424B4 with the SEC on June 29, 2018 (the “Prospectus”).  The Registration Statement and Prospectus are collectively referred to as the “Offering Documents.”

The complaint alleges that, on August 8, 2018, after market-close, BrightView issued a press release announcing its financial and operating results for the third quarter of 2018.  Despite reporting “strong third quarter results” and “record revenues,” BrightView reported that “[r]evenues from the Development Services segment declined 5.7%” compared to the prior year “due to winding down production on certain large projects that reached substantial completion during the quarter, coupled with the timing of commencing work on new projects.” Then, on August 9, 2018, BrightView filed its quarterly report for the same period with the SEC, reiterating the results previously announced in its earlier press release. Therein, BrightView disclosed that its Maintenance Services revenue was negatively impacted by its “Managed Exit” strategy. The Managed Exit strategy was BrightView’s purported corporate strategy to allow certain “underperforming contracts” to expire upon maturity or renegotiate the contracts to provide BrightView with more favorable terms.  Following this news, BrightView’s common stock price fell $2.30 per share, or over 10%, to close at $19.90 per share on August 9, 2018.
 
On February 7, 2019, BrightView issued a press release announcing its financial and operating results for the first quarter 2019. The press release attributed BrightView’s disappointing financial and operating results to, inter alia, its “strategic Managed Exit initiative and other operating conditions.” Additionally, in its quarterly report filed with the SEC that same day, BrightView advised investors that the underperforming contracts part of the Managed Exit strategy accounted for a year-over-year quarterly decline of $10.8 million in landscape services revenues.  Following this news, BrightView’s common stock price declined $1.51 per share, or over 10%, to close at $13.23 per share on February 7, 2019, representing a decline of nearly 40% from the IPO price. 
 
The complaint alleges that the defendants made materially false and misleading statements in the Offering Documents and/or failed to disclose that: (i) a material portion of BrightView’s contracts were underperforming and/or represented undesirable costs to BrightView; (ii) as a result of the foregoing, BrightView would implement a “Managed Exit” strategy to end its low margin and non-profitable contracts with customers; (iii) this “Managed Exit” strategy would negatively impact BrightView’s future revenue throughout 2018, and would continue to do so well into fiscal year 2019; and (iv) as a result, the Offering Documents were materially false and/or misleading and failed to state information required to be stated therein.

If you are a member of the class described above, you may no later than June 14, 2019 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 info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.

CONTACT:
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 info@ktmc.com

Please complete this form relating to your transactions for BrightView Holdings, Inc. (NYSE: BV) pursuant and/or traceable to the initial public offering completed on or around July 2, 2018 (the “IPO”).

You may also contact James Maro, Jr., Esq. or Adrienne Bell, Esq. at 610.667.7706 or toll free at 888.299.7706, or you may submit your information via email at info@ktmc.com, or you may click here to print a PDF of this form.

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# of Shares
Price per Share
 
 
 
Principal Amount
Amount Paid
Series or CUSIP
 
 
 
# of Contracts
Price per Contract
Exercise Price
Expiration Date
Did you purchase shares of BrightView Holdings, Inc. prior to the Class Period?
Are you a current or former employee of BrightView Holdings, Inc.?
The submission of this form does not create an attorney-client relationship, nor an obligation on the part of Kessler Topaz or you to file a lead plaintiff motion in this matter. Any information you submit will be maintained as confidential. If Kessler Topaz, in its sole discretion, believes that you might be an appropriate lead plaintiff candidate, Kessler Topaz will contact you to discuss the matter and whether to establish an attorney client relationship. By signing this form you are authorizing us to contact you regarding this case and/or future cases.
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