Company name Textron, Inc.
Stock symbol TXT
Class period January 31, 2018 to October 17, 2018
Court Southern District of New York

NEW YORK, September 10, 2019 – Bragar Eagel & Squire, P.C. announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all investors that purchased Textron, Inc. (NASDAQ: TXT) securities between January 31, 2018 and October 17, 2018 (the “Class Period”).  Investors have until October 21, 2019 to apply to the Court to be appointed as lead plaintiff in the lawsuit.

On March 6, 2017, Textron expanded its recreational vehicle business through its $316 million acquisition of Arctic Cat Inc. (“Arctic Cat”). Upon the completion of this transaction, Arctic Cat became an indirect wholly-owned subsidiary of Textron. Throughout the Class Period, Textron repeatedly touted Arctic Cat as an important growth business for the Company, reassuring investors about dealer demand, end-market sales and earnings prospects for its Arctic Cat products.

The complaint, filed August 22, 2019, alleges that despite these positive depictions to the market, defendants failed to disclose that: (1) end-market sales of Arctic Cat products were slowing, resulting in a massive glut of old Arctic Cat inventory on dealers’ floors; (2) in order to clear out this old inventory, the Company provided significant price discounts, which negatively impacted Textron’s earnings; (3) as a result, Textron’s positive statements about Arctic Cat’s business, operations, and prospects were false and misleading.

The truth about Arctic Cat’s inventory problems was revealed on October 18, 2018, when Textron reported weak third quarter 2018 earnings and decreased its full-year 2018 forecast. The company blamed the shortfall on heavy discounts issued by Textron to clear out old Arctic Cat inventory. Analysts immediately lowered their price targets on Textron stock citing the inventory concerns at Arctic Cat. On this news, Textron’s stock fell $7.29 or 11.25 percent, to close at $57.49 on October 18, 2018.

If you purchased Textron securities during the Class Period or continue to hold shares purchased before the Class Period, have information, 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 Brandon Walker or Melissa Fortunato by email at, or telephone at (212) 355-4648, or by filling out the contact form below.  There is no cost or obligation to you.

Join the action by filling out the form below

First name*

Last name*

City, state ZIP code

Email address*

Daytime phone

Evening phone

Purchase Date

No. of Shares

Purchase Price

Purchase Date

No. of Shares

Purchase Price

Join action?

Call to provide more information: Tel: (212) 355-4648

Please list below any additional transactions in this security:

Additional comments

The submission of this form does not create an attorney-client relationship, nor any obligation on the part of Bragar Eagel & Squire, P.C., or you to file a legal action. Any information you submit will be maintained as confidential. If Bragar Eagel & Squire, P.C., in its sole discretion, believes that you might be an appropriate class representative, Bragar Eagel & Squire, P.C., will contact you to discuss the matter and to determine whether to establish an attorney client relationship.