An investor in shares of Forterra Inc (NASDAQ:FRTA) filed a lawsuit in the U.S. District Court for the Eastern District of New York over alleged Securities Laws violations by Forterra Inc in connection with certain allegedly false and misleading statements made in connection with the Company’s October 21, 2016 initial public offering (the “IPO”).
Investors who purchased shares of Forterra Inc (NASDAQ:FRTA) should contact the Shareholders Foundation at email@example.com or call +1(858) 779 – 1554.
Irving, TX based Forterra, Inc. is a manufacturer of pipe and precast products. Forterra Inc offers products for a range of water-related infrastructure applications, including water transmission, distribution and drainage. Forterra Inc went public in October 2016. Shares of Forterra Inc (NASDAQ:FRTA) rose to as high as $22.40 per share in December 2016.
According to the complaint the plaintiff alleges on behalf of purchasers of Forterra Inc (NASDAQ:FRTA) who purchased common shares in connection with the Company’s October 21, 2016 IPO, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that the Registration Statement used to conduct the IPO contained inaccurate statements and omitted facts necessary to make other statements made therein not misleading.
The plaintiff claims that among other things, the Registration Statement failed to disclose, at the time of the IPO, that organic sales in Forterra’s Drainage and Water segments had significantly declined, that Forterra was experiencing increased pricing pressure due to competition and continued softness in its concrete and steel pipe business, that Forterra had been losing business in its important pipe and precast business due to in large part to operational problems at its production plants, and that Forterra had undisclosed material weaknesses in its internal controls that prevented it from accurately reporting and forecasting its financial results.
On March 29, 2017 Forterra Inc announced its fourth quarter and full year 2016 results. Forterra Inc reported that its annual Total Revenue rose from $716.97 million in 2015 to over $1.36 billion in 2016 and that its Net loss declined from $88.54 million to $7.61 million in 2016.
On May 15, 2017, Forterra Inc revealed a net sales of $338.3 million for 2017’s first quarter, compared to $187 million in the prior year quarter. Forterra Incsaid that sales growth was “attributable to the impact of acquisitions that increased net sales by $163 million” rather than to organic growth. Forterra Inc also announced a consolidated net loss of $22.5 million, or $0.35 loss per share. Forterra Inc’s Chief Executive Officer said that its “earnings results for the quarter were impacted by a number of factors that unfortunately will persist through the second quarter of 2017.”
The price of Forterra Inc (NASDAQ:FRTA) common stock now trades at approximately 75% of its IPO price.
Those who purchased shares of Forterra Inc (NASDAQ:FRTA) have certain options and should contact the Shareholders Foundation.
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