Securities Class Action Filed Against Trinity Industries Inc.
Violations of federal securities laws as a result of a series of materially false statements. The Complaint alleges that, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Trinity engaged in cost-cutting alterations to its ET-Plus guardrails; (2) the safety of its units was compromised as a result of the alterations; (3) the crash tests on Trinity’s products may have been flawed; and (4) Trinity faces additional civil and criminal liabilities as a result of the flawed crash tests. As a result of the foregoing, Defendants’ statements about Trinity’s business, operations and prospects were false and misleading and/or lacked a reasonable basis in that the Company’s liabilities were understated, and its financial projections were overstated. According to the Complaint, after the market closed on April 21, 2015, an article published on Bloomberg stated that the U.S. Justice Department was investigating the Federal Highway Agency’s support of Trinity’s highway guardrail system. On this news, Trinity shares declined $3.43 per share, or by more than 9%, to close at $32.82 per share on April 22, 2015. On April 24, 2015, the Company confirmed the initiation of the federal investigation in a conference call with investors. On this news, Trinity shares declined an additional $4.66 per share, or by 14%, to close at $28.70 per share on April 24, 2015. Filed in N.D. Tex.
Lead Plaintiff Deadline: The deadline to file for lead plaintiff in this action is 6/26/2015.
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