The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Adient plc (NYSE: ADNT) who purchased shares between October 31, 2016 and June 11, 2018. The action, which was filed in the United States District Court for the Southern District of New York, alleges that the Company violated federal securities laws.
In particular, the complaint alleges that defendants repeatedly stressed to investors that the Company was “solidly on track” to deliver 200-basis-point margin expansion by 2020, which was largely dependent on operational and financial improvements in Adient’s core SS&M business, while unbeknownst to investors, Adient’s core SS&M business faced significant operational problems such that the repeatedly touted 200-basis-point margin expansion was not “on track” at any point during the Class Period. Consequently, Adient stock traded at artificially inflated prices during the Class Period, reaching a high of $85.93 per share.
Shareholders have until December 3, 2018 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
Adient plc (“Adient”) became a standalone corporation on October 31, 2016, after Johnson Controls International plc’s “separation” of its automotive seating and interiors operations (“the former Parent”). On June 24, 2016, Adient was established under Irish law with the intention of holding these companies. On October 31, 2016, Adient’s common shares started transacting “regular-way” on the New York Stock Exchange under the ticker symbol “ADNT.” Adient’s capital structure upon becoming an independent corporation included 500 million authorized ordinary shares and 100 million approved preference shares, all of which had a par value of $0.001. There were 93,671,810 Adient common shares issued as of October 31, 2016.
The consolidated financial statements of Adient plc and its subsidiaries have been chosen by the directors to be prepared (hence referred to as “Adient”) in line with Section 279 of the Companies Act 2014 (the “Act”), which stipulates that a true and accurate statement By preparing the financial accounts in line with, a fair representation of the condition of affairs and profit or loss may be provided. United States generally accepted accounting principles (“U.S. GAAP”), as described in Section 279 of the Act, as long as applying those standards throughout the creation of the financial statements does not violate any clause of
the Act or of any rules enacted under it.
The realizability of Adient plc’s deferred tax assets is examined every quarter or whenever events or other changes in circumstances suggest that a review is necessary. The historical and future financial results of the legal entity or combined group recording the net deferred tax asset are taken into account, along with any other positive or negative information, in assessing the need for a valuation allowance. Adient uses significant judgment in determining whether and when to establish or release the entire deferred tax asset valuation allowance or only a portion of it. Adient’s valuation allowances may need to be adjusted from time to time because future financial
In its fiscal 2019 analysis of the realizability of its global deferred tax assets, Adient took into account tax planning measures, additional positive and negative evidence, and the external debt refinancing, associated incremental net financing costs, and restructuring of the internal financing that took place in the third quarter of fiscal 2019, as well as the long-lived asset impairment recorded in the second quarter of fiscal 2019.
A measure called “adjusted EBITDA” is used by Adient to assess the performance of its reportable segments. It is made up of income before income taxes and noncontrolling interests, minus net financing charges, restructuring and impairment costs, restructuring-related costs, net mark-to-market adjustments on pension and postretirement plans, transaction gains/losses, purchase accounting amortization, depreciation, stock-based compensation, and other non-recurring items (“Adjusted EBITDA”). Additionally, some corporate-related expenses are not distributed among the segments. The reportable segments reflect the financial data that is examined by Adient’s main operating decision maker and are consistent with how management perceives the markets that Adient serves.
Manufacturing vehicle seating systems is done by Adient plc. Complete seats, seats for commercial vehicles, structures and mechanisms, foam, textiles, and trim are among the company’s goods. The Americas, EMEA, and Asia are the three geographic regions through which it operates. Plymouth, Michigan serves as the company’s headquarters. It was established in 1985.
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