Stockholder Claims Acuity Should Have Shed Light on Negative Financial Outlook

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Acuity Brands, Inc., its CEO, and its CFO are on the receiving end of a proposed class action lawsuit filed by a stockholder who claims the parties misled him and other investors regarding the company’s future prospects. According to the suit, the defendants released “a series of disappointing quarterly financial and operational results” during 2016 and 2017, yet repeatedly assured investors that the lighting manufacturer would be able to meet its financial goals and produce positive results. The prices of the company’s stock allegedly declined with each report until the defendants finally admitted in April 2017 that Acuity would be unable to achieve its “target range,” the suit says.

The plaintiff argues that the defendants violated federal securities laws by failing to disclose to investors “known trends negatively impacting sales” and overstating the company’s ability to achieve positive financial results.