SAN FRANCISCO, Sept. 08, 2016 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP alerts investors in AECOM (NYSE:ACM) to the October 31, 2016 Lead Plaintiff deadline in the securities class action filed in the United States District Court for the Central District of California.
To all investors in ACM: If you purchased or otherwise acquired securities of AECOM between February 11, 2015 and August 15, 2016 and suffered over $50,000 in losses contact Hagens Berman Sobol Shapiro LLP. For more information visit:
https://www.hbsslaw.com/cases/ACM
or contact Reed Kathrein, who is leading the firm’s investigation, by calling 510-725-3000 or emailing ACM@hbsslaw.com.
Throughout the class period, Defendants repeatedly emphasized AECOM’s strong free cash flow and the benefits to the Company associated with its October 17, 2014 acquisition of URS Corporation (“URS”).
On August 10, 2016, AECOM filed an amendment to its Form 10-K to explain in part “management discovered deficiencies associated with the acquisition of URS Corporation related to (a) the alignment of accounting policies specific to forward loss reserves and (b) income tax accounts.” Its auditor opined “[in our opinion…AECOM has not maintained, in all material respects, effective internal control over financial reporting as of September 30, 2015.”
Then, on August 16, 2016 Spruce Point Capital Management published a report containing its forensic financial and accounting analysis of AECOM’s recent financial results and condition. Spruce Point concluded “AECOM’s stock is worth approximately 33% - 45% less than its current price.” Spruce Point observed that the “CEO’s $18 million compensation in 2015 [was] heavily tied to its aggressive interpretation of its Free Cash Flow per share,” and asserted that AECOM had misrepresented the costs and benefits of the URS acquisition.
The market reacted to this news, sending the per share price of AECOM securities down approximately 4.7% to close at $33.44 on August 16, 2016.
“Among other items, we’re looking into the metrics Spruce highlighted and the insider selling during the class period,” said Hagens Berman partner Reed Kathrein.
Whistleblowers: Persons with non-public information regarding AECOM should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email ACM@hbsslaw.com.
About Hagens Berman
Hagens Berman is a national investor-rights law firm headquartered in Seattle, Washington with offices in 10 cities. The Firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the Firm and its successes can be found at www.hbsslaw.com. Read the Firm’s Securities Newsletter, and visit the blog. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.