In re REV Group, Inc. Securities Litigation
Bernstein Liebhard is sole lead counsel representing the lead plaintiff, Houston Municipal Employees Pension System, in a securities class action entitled Ramanitharan v. REV Group, Inc., et al., No. 18-cv-1270-LA (E.D. Wis.) alleging violations of Section 11 of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934. Plaintiff alleges that the defendants (Rev Group, certain executive officers, and underwriters of its initial public offering) issued false and misleading statements concerning the company’s margin growth in the company’s offering prospectus and subsequently issued earnings guidance for fiscal year 2018 that defendants knew was unreachable. At the end of the Class Period, defendants substantially revised its prior guidance, reporting Adjusted EBITDA for the 2Q18 that was 25% below analysts’ estimates of $45 million. The company also reduced fiscal year 2018 net income by approximately 20% and Adjusted EBITDA by approximately 15%. A consolidated amended complaint was filed on November 20, 1018. The action is pending.