A lawsuit was filed on behalf of investors in BrightView Holdings, Inc. (NYSE: BV) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 04/30/2019 -- An investor, who purchased shares of BrightView Holdings, Inc. (NYSE: BV), filed a lawsuit over alleged Securities Laws violations by BrightView Holdings, Inc. in connection with the Company's initial public offering completed on or around July 2, 2018.
Investors who purchased shares of BrightView Holdings, Inc. (NYSE: BV) have certain options and for certain investors are short and strict deadlines running. Deadline: June 14, 2019. NYSE: BV investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
On August 8, 2018, BrightView Holdings, Inc announced its financial and operating results for the third quarter of 2018, ended June 30, 2018. Despite reporting "strong third quarter results" and "record revenues," the Company 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."
The following day, on August 9, 2018, BrightView Holdings, Inc filed its quarterly report for the same period with the Securities and Exchange Commission ("SEC"), reiterating the results previously announced in its earlier press release. Therein, the Company 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 contacts" to expire upon maturity or renegotiate the contracts to provide the Company with more favorable terms. Critically, this was the first time the Company disclosed that it held "underperforming" customer contracts.
The extent of the Company's "underperforming contracts" was further revealed on November 27, 2018, when BrightView issued a press release reporting its financial and operating results for the fourth quarter and fiscal year 2018. Therein, the Company revealed that for the fourth quarter and full year, its Managed Exit strategy offset its Maintenance Services revenue by 2.6% and 1.6%, respectively. Additionally, BrightView disclosed that its Managed Exit strategy would result in a decline in revenue of $15 to $25 million over the course of full year fiscal 2019.
On November 27, 2018, BrightView Holdings, Inc. announced its fourth quarter 2018 and full year 2018 financial results and issued its 2019 fiscal outlook. BrightView Holdings, Inc. reported that its annual Total Revenue rose from over $2.25 billion for the 12 months period that ended on September 30, 2017 to over $2.35 billion for the 12 months period that ended on September 30, 2018 and that its Net Loss declined from $37.44 million to $15.08 million over those respective time periods.
On November 28, 2018, BrightView Holdings, Inc. also hosted a conference call with investors and analysts to discuss the Company's financial and operating results. On that call, BrightView's Chief Executive Officer ("CEO") Andrew V. Masterman disclosed that certain of the Company's contracts not only had "no margin", but in fact were "under water".
Shares of Shares of BrightView Holdings, Inc. (NYSE: BV) declined to as low as $9.05 per share on December 26, 2019.
Then, on February 7, 2019, BrightView Holdings, Inc. announced its financial and operating results for the first quarter 2019, ended December 31, 2018. In the announcment, CEO Masterman attributed the Company's disappointing financial and operating results to, inter alia, the Company's "strategic Managed Exit initiative and other operating conditions that we highlighted in our guidance on our November 2018 earnings conference call, as well as a slow start to the season for our snow removal services." Additionally, in the Company's quarterly report filed with the SEC that same day, the Company 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.
Later that day, on February 7, 2019, BrightView Holdings, Inc. held an earnings conference call with investors and analysts. On that call, Defendant Masterman warned investors that Company's underperforming contracts comprising its Managed Exit strategy accounted for a $23.1 million drop in revenue for full year fiscal 2018, and the Company expected a loss in revenue of over $25 million for 2019.
The plaintiff alleges on behalf of purchasers of BrightView Holdings, Inc. (NYSE: BV), who purchased or otherwise acquired BrightView common stock pursuant and/or traceable to the Company's initial public offering completed on or around July 2, 2018 (the "IPO"), that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that the defendants made false and/or misleading statements and/or failed to disclose that a material portion of BrightView's contracts were underperforming and/or represented undesirable costs to the Company, that as a result of the foregoing, BrightView would implement a "managed exit" strategy to end its low margin and non-profitable contracts with customers, that 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 that as a result, the Offering Documents were materially false and/or misleading and failed to state information required to be stated therein.
Those who purchased shares of BrightView Holdings, Inc. (NYSE: BV) have certain options and should contact the Shareholders Foundation.
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The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.