Cases
AECOM (NYSE : ACM)
Securities Class Action
Overview
Overview
- Date:
- 2/9/2016
- Company Name:
- AECOM
- Stock Symbol:
- ACM
- Class Period:
- FROM 2/11/2015 TO 8/15/2016
- Status:
- Closed/Complete
- Court:
- U.S. District Court: Central California
NEW YORK, September 2, 2016 – Bragar Eagel & Squire, P.C. announces that a class action lawsuit has been filed in the United States District Court for the California Central District Court on behalf of all persons or entities who acquired AECOM (NYSE: ACM) securities between February 11, 2015 to August 15, 2016 (the “Class Period”).
AECOM together with its subsidiaries, engages in designing, building, financing, and operating infrastructure assets worldwide. The Company operates through three segments: Design and Consulting Services (DCS), Construction Services (CS), and Management Services (MS). The DCS segment provides planning, consulting, architectural and engineering design, program management, and construction management services for industrial, commercial, institutional, and government clients, such as transportation, facilities, environmental, and energy/power markets. The CS segment offers building construction and energy, as well as infrastructure and industrial construction services. The MS segment provides program and facilities management and maintenance, training, logistics, consulting, technical assistance, and systems integration and information technology services primarily for agencies of the U.S. government and other national governments.
On October 17, 2014, AECOM announced that the Company had finalized its acquisition of URS Corp. (“URS” and the “URS Acquisition”).
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) AECOM engaged in fraudulent and deceptive business practices (ii) AECOM lacked effective internal controls over financial reporting; (iii) AECOM overstated the benefits of the URS Acquisition; (iv) AECOM overstated the Company’s free cash flow per share; and (v) as a result of the foregoing, AECOM’s public statements were materially false and misleading at all relevant times.
On August 16, 2016, Spruce Point Capital Management published a report on AECOM (the “Spruce Point Report”), stating that “after a careful forensic financial and accounting analysis of AECOM’s recent financial results and condition, we believe that AECOM’s stock is worth approximately 33% - 45% less than its current price.” Among other issues, the Spruce Point Report cited AECOM management’s “misaligned incentive structure,” pursuant to which the Company’s “CEO’s $18 million compensation in 2015 [was] heavily tied to its aggressive interpretation of its Free Cash Flow per share,” and asserted that the Company had misrepresented the costs and benefits of the URS Acquisition.
On this news, AECOM stock fell $1.65, or 4.7%, to close at $33.44 on August 16, 2016, damaging investors.
If you acquired AECOM securities during 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 Melissa A. Fortunato, Esq. by email at investigations@bespc.com, or telephone at (212) 355-4648, or by filling out the contact form below. There is no cost or obligation to you.
AECOM together with its subsidiaries, engages in designing, building, financing, and operating infrastructure assets worldwide. The Company operates through three segments: Design and Consulting Services (DCS), Construction Services (CS), and Management Services (MS). The DCS segment provides planning, consulting, architectural and engineering design, program management, and construction management services for industrial, commercial, institutional, and government clients, such as transportation, facilities, environmental, and energy/power markets. The CS segment offers building construction and energy, as well as infrastructure and industrial construction services. The MS segment provides program and facilities management and maintenance, training, logistics, consulting, technical assistance, and systems integration and information technology services primarily for agencies of the U.S. government and other national governments.
On October 17, 2014, AECOM announced that the Company had finalized its acquisition of URS Corp. (“URS” and the “URS Acquisition”).
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) AECOM engaged in fraudulent and deceptive business practices (ii) AECOM lacked effective internal controls over financial reporting; (iii) AECOM overstated the benefits of the URS Acquisition; (iv) AECOM overstated the Company’s free cash flow per share; and (v) as a result of the foregoing, AECOM’s public statements were materially false and misleading at all relevant times.
On August 16, 2016, Spruce Point Capital Management published a report on AECOM (the “Spruce Point Report”), stating that “after a careful forensic financial and accounting analysis of AECOM’s recent financial results and condition, we believe that AECOM’s stock is worth approximately 33% - 45% less than its current price.” Among other issues, the Spruce Point Report cited AECOM management’s “misaligned incentive structure,” pursuant to which the Company’s “CEO’s $18 million compensation in 2015 [was] heavily tied to its aggressive interpretation of its Free Cash Flow per share,” and asserted that the Company had misrepresented the costs and benefits of the URS Acquisition.
On this news, AECOM stock fell $1.65, or 4.7%, to close at $33.44 on August 16, 2016, damaging investors.
If you acquired AECOM securities during 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 Melissa A. Fortunato, Esq. by email at investigations@bespc.com, or telephone at (212) 355-4648, or by filling out the contact form below. There is no cost or obligation to you.