CaesarStone investors may receive additional information about the case by clicking the link "Join this Class Action" above.
According to the complaint, CaesarStone manufactures and sells engineered quartz surfaces under the CaesarStone brand in the United States, Australia, Canada, Israel, Europe, and internationally. The company’s products are engineered quartz slabs, which are used as kitchen countertops in the renovation and remodeling, and residential construction end markets, as well as other applications. The company sells its products directly to fabricators, sub-distributors, and resellers; and indirectly through a network of independent distributors.
The complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, the complaint alleges that the defendants made false and/or misleading statements and/or failed to disclose that: (i) that the cost of quartz rose by approximately 20% in 2014 while the company claimed in SEC filings the impact of the price increase was just 4%; (ii) independent lab tests demonstrate that CaesarStone’s samples contained less quartz than advertised; (iii) CaesarStone’s reported consolidated margins, gross margins, and EBITDA were overstated; (iv) the extent of and risk posed by a growing number of lawsuits for approximately 60 silicosis-related injuries or deaths suffered by workers and fabricators of its product in Israel was understated; (v) the impact recent OSHA warnings regarding silicosis would have on the opening of a new U.S. facility and associated costs; (vi) recent inspection reports revealed audit deficiencies related to revenue and inventory controls; and (vii) as a result of the foregoing, the defendants’ statements about CaesarStone’s business, operations, and prospects were false and misleading and/or lacked a reasonable basis at all relevant times.
The Class Period begins on March 25, 2013, when the company issued a press release and filed an annual report, or Form 20-F with the SEC, announcing its financial and operating results for the fiscal year 2012. According to the complaint, the filing deemphasized the risk posed by the injury and death-related lawsuits filed against CaesarStone.
Then, on August 19, 2015, analyst firm Spruce Point Capital Management published an in-depth report on CaesarStone, which the complaint alleges summarized the aforementioned false and misleading statements and failures of controls and disclosure Following this news, CaesarStone ADRs fell $3.68, or 7.6%, to close at $44.61 on August 19, 2015.
If you are a member of the class described above, you may no later than October 26, 2015, 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.
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706