Evoqua Water Technologies Corp.
- Company Name
- Evoqua Water Technologies Corp.
- Stock Symbol
- Class Period
- November 6, 2017 to October 30, 2018
- Motion Deadline
- January 5, 2019
- Southern District of New York
The complaint charges Evoqua and certain of its officers with violations of the Securities Exchange Act of 1934. Evoqua purports to be a leading provider of mission-critical water treatment solutions, offering services, systems, and technologies to support its customers’ full water lifecycle needs. With over 200,000 installations worldwide, the Company holds leading positions in the industrial, commercial and municipal water treatment markets in North America.
The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose adverse information regarding the Company’s business and operations, including that Evoqua had failed to successfully integrate its prior acquisitions and was experiencing supply chain disruptions influenced by tariffs and an extended delay on a large aquatics project. As a result of defendants’ false statements and omissions during the Class Period, Evoqua securities traded at artificially inflated prices of more than $24 per share.
Then on October 30, 2018, Evoqua announced disappointing preliminary financial results for the fourth quarter and fiscal year ended September 30, 2018, which fell below the Company’s and analysts’ expectations. Evoqua lowered its financial forecast for fiscal 2018 and warned investors that it expected 2018 revenue to increase only 7%-7.4%, as opposed to the 7%-10% increase it had forecast previously, and 2018 adjusted EBITDA to increase only 2.6%-4.5% instead of 13%-18%. Evoqua stated that the shortfalls were “primarily due to acquisition system integration issues, supply chain disruptions influenced by tariffs and an extended delay on a large aquatics project.” On this news, Evoqua’s stock price fell $4.78 per share, or over 34%, to close at $9.02 per share on October 30, 2018.