NEW YORK--(EON: Enhanced Online News)--Bragar Eagel & Squire, P.C. reminds investors that a class action lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of all persons or entities who purchased or otherwise acquired Supreme Industries Inc. (NYSE:STS) securities between July 22, 2016 and October 21, 2016 (the “Class Period”).
“Heavy insider selling in STS is a canary in the coalmine that should not be ignored”
The complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the third-quarter 2015 backlog figure was a result of several large orders’ timing and (2) the third-quarter 2016 backlog figure declined since 2015. As a result, Defendants’ public statements about Supreme Industries’ business, operations, and prospects were materially false and/or misleading throughout the Class Period.
On October 21, 2016, the price of Supreme Industries shares plummeted by approximately 24% to close at $13.68 per share when the Company disclosed that its third-quarter backlog of truck sales declined 22% as compared to 2015. On October 23, 2015, the Company stated that “[a]s a result of the strong order activity, our order backlog at the end of the third quarter was $74.4 million, which is 47% higher as compared to the third quarter of 2014.” On July 22, 2016, the Company stated that third-quarter 2016 backlog “would settle” similarly to the impressive third-quarter 2015 results.
However, on October 21, 2016, management revealed for the first time that the large 2015 backlog was the result of “two large fleet replacement orders and the timing of an annual fleet account order received during the third quarter of last year.” Following this news, Supreme shares declined $4.28 per share on October 21, 2016 to close at $13.68.
On October 22, 2016, Cliffside Research published a report focusing on the unexpected third-quarter backlog decline of 22% year-over-year and heavy insider selling during 2016. “Heavy insider selling in STS is a canary in the coalmine that should not be ignored,” the note said. Following this news, Supreme shares declined $2.38 per share on October 24, 2016 to close at $11.30.
If you purchased or otherwise acquired Supreme securities and suffered a loss or continue to hold shares purchased prior to the Class Period, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact J. Brandon Walker, Esq. by email at firstname.lastname@example.org, or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating in commercial and securities litigation. For additional information, please go to www.bespc.com.