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Bragar Eagel & Squire, P.C. Reminds Investors That Class Action Lawsuits Have Been Filed Against Methode Electronics, Starbucks, Endava, and Orthofix and Encourages Investors to Contact the Firm
Globe Newswire 18-Sep-2024 9:00 PM
NEW YORK, Sept. 18, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that class actions have been commenced on behalf of stockholders of Methode Electronics Inc. (NYSE:MEI), Starbucks Corporation (NASDAQ:SBUX), Endava PLC (NYSE:DAVA), and Orthofix Medical Inc. (NASDAQ:OFIX). Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link provided.
According to the Complaint: (i) Methode Electronics had lost highly skilled and experienced employees during the COVID-19 pandemic necessary to successfully complete Methode Electronics' transition from its historic low mix, high volume production model to a high mix, low production model at its Monterrey facility; (ii) Methode Electronics' attempts to replace its General Motors center console production with more diversified, specialized products for a wider array of vehicle manufacturers and OEMs, in particular in the electric vehicle ("EV") space, had been plagued by production planning deficiencies, inventory shortages, vendor and supplier problems, and, ultimately, botched execution of Methode Electronics' strategic plans; (iii) Methode Electronics' manufacturing systems at its critical Monterrey facility suffered from a variety of logistical defects, such as improper system coding, shipping errors, erroneous delivery times, deficient quality control systems, and failures to timely and efficiently procure necessary raw materials; (iv) Methode Electronics had fallen substantially behind on the launch of new EV programs out of its Monterrey facility, preventing Methode Electronics from timely receiving revenue from new EV program awards; and (v) as a result, Methode Electronics was not on track to achieve the 2023 diluted earnings-per-share guidance or the 3-year 6% organic sales compound annual growth rate represented to investors and such estimates lacked a reasonable factual basis.
According to the complaint, on April 30, 2024, after market hours, investors began to question the veracity of defendants' public statements following Starbucks' press release announcing its second quarter fiscal 2024 earnings and the accompanying same-day earnings call. In pertinent part, defendants announced disappointing Q2 Fiscal 2024 results, stating that store sales declined globally 4%, with traffic falling 7%, and further disclosed a 2% decline in new revenues to $8.6 billion. On the back of these results, Starbucks additionally lowered their guidance for FY 2024, citing global declines in store sales, net revenues, and both GAAP and non- GAAP earnings. The Company attributed its results and lowered guidance on the issues Starbucks was facing in China, with CFO Ruggeri stating, in reference to the Chinese market, "we still see the effects of a slower-than-expected recovery, and we see fierce competition among value players in the market."
Investors and analysts reacted immediately to Starbucks' revelation. The price of Starbucks' common stock declined dramatically. From a closing market price of $88.49 per share on April 30, 2024, Starbucks' stock price fell to $74.44 per share on May 1, 2024, a decline of over 15% in the span of just a single day.
The Complaint alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) demand for Endava's services was declining; (2) Endava's clients delayed or canceled projects; and (3) as a result, Endava's fiscal 2023 and 2024 revenue and earnings would be adversely affected.
Class Period: October 11, 2022, and September 12, 2023
Lead Plaintiff Deadline: October 21, 2024
According to the Complaint, the Company made false and misleading statements to the market. Orthofix failed to disclose that certain members of its membership team engaged in repeated instances of offensive and inappropriate conduct. The Company's failure to inform investors of the truth became apparent on September 12, 2023, when its Board of Directors decided to terminate the offending members of the management team. Based on these facts, the Company's public statements were false and materially misleading throughout the class period. When the market learned the truth about Orthofix, investors suffered damages.
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
