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NEW YORK, June 05, 2015 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Toshiba Corporation (“Toshiba” or the “Company”) (OTC:TOSYY) (OTC:TOSBF) and certain of its officers. The class action, filed in United States District Court, Central District of California, is on behalf of a class consisting of all persons or entities who purchased Toshiba securities between May 8, 2012 and May 7, 2015 inclusive (the “Class Period”). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the “Exchange Act”).
If you are a shareholder who purchased Toshiba securities during the Class Period, you have until August 3, 2015 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Toshiba Corporation, together with its subsidiaries, engages in the research and development, manufacture, and sale of electronic and energy products worldwide. It operates through Energy & Infrastructure, Community Solutions, Healthcare Systems & Solutions, Electronic Devices & Components, Lifestyle Products & Services, and Others segments.
The Complaint alleges that throughout the Class Period, Defendants issued materially false and misleading statements about the Company's business, future revenues, operating results and financial prospects. Specifically, Defendants made false and/ or misleading statements and/or failed to disclose that: the company misled investors regarding the total amounts of costs for certain infrastructure projects; thereby manipulating the profits and losses for these infrastructure projects as well as misguiding investors regarding the timing in which such contract losses and provisions for contract losses were recorded; as a result, Toshiba's financial statements were materially false and misleading at all relevant times.
On April 3, 2015, Toshiba issued a press release announcing the establishment of a special investigation committee concerning the accounting of certain infrastructure projects.
On this adverse news, shares of TOSYY fell $1.23 per share, or over 4%, from its previous closing price to close at $24.56 per share on April 6, 2015, and shares of TOSBF fell $0.16 per share or over 3% from its previous closing price to close at $4.13 per share on April 6, 2015.
On May 8, 2015, Toshiba issued a press release announcing the establishment of an independent investigation committee concerning the accounting of certain infrastructure projects and the possible revision of earnings for prior years.
On May 10, 2015, BARRON’S ASIA published a report which stated that Toshiba “[f]ell 16.7% this morning on Tokyo after the electronics maker launched an accounting probe into its infrastructure business division and withdrew its 2014 earnings forecast. Toshiba also said it would not pay dividend this year."
Until now, the accounting investigation has focused on power systems, social infrastructure and community solution units in Japan and overseas. “Several construction projects have understated costs,” according to a spokesperson from Toshiba. "Toshiba earned about 11% of its operating income from its power and social infrastructure business in 2013.”
On this news, shares of TOSYY fell $5.75 per share, or over 23%, over the next two days to close at $18.33 per share on May 11, 2015 and shares of TOSBF fell $0.88 per share or over 22% over the next two days to close at $3.09 per share on May 11, 2015.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
CONTACT: Robert S. Willoughby Pomerantz LLP email@example.comNEXT ARTICLE
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