Labaton Sucharow Files Securities Class Action Lawsuit Against United Technologies Corporation
NEW YORK (May 12, 2017) – Labaton Sucharow LLP announced today that the Firm has filed a securities class action lawsuit on behalf of FRANKFURT-TRUST Investment Luxemburg AG (FT Lux) against United Technologies Corporation (United Technologies), and certain of its senior executives (collectively, the defendants). The action, FRANKFURT-TRUST Investment Luxemburg AG v. United Technologies Corporation, No. 17-cv-3570 (S.D.N.Y.), asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the Exchange Act), and U.S. Securities and Exchange Commission (SEC) Rule 10b-5 promulgated thereunder, on behalf of all person or entities who purchased or otherwise acquired the publicly traded securities of United Technologies between April 21, 2015 and July 20, 2015 (the class period).
United Technologies is a manufacturer and servicer of high-technology products, including aircraft components, elevators, escalators, air-conditioning units, and military-missile systems. The complaint alleges that during the class period, the defendants violated provisions of the Exchange Act by issuing and reaffirming unfounded and inflated earnings guidance, primarily based on the planning assumptions in two of the company’s key business units: UTC Aerospace Systems (UTAS) and Otis Elevator Co. (Otis). The defendants’ class period representations were materially false and misleading because they failed to disclose or indicate that United Technologies’ earnings forecast relied on planning assumptions for the UTAS and Otis units that were not fully scrutinized and far too aggressive.
On July 21, 2015, the company cut its 2015 earnings guidance on the basis of weak performance by the UTAS and Otis units. In reaction to these revelations, UTX stock lost hundreds of millions of dollars in market capitalization, with the company’s stock price falling from a class period high of $119.14 per share on May 14, 2015, to close at $102.71 per share on July 21, 2015.
If you purchased or acquired the publicly traded securities of United Technologies during the class period, you are a member of the class and may be able to seek appointment as the lead plaintiff. The lead plaintiff motion papers must be filed with the U.S. District Court for the Southern District of New York no later than July 11, 2017. The lead plaintiff is a court-appointed representative for absent members of the class. You do not need to seek appointment as the lead plaintiff to share in any class recovery in this action. If you are a class member and there is a recovery for the class, you can share in that recovery as an absent class member. You may retain counsel of your choice to represent you in this action.
If you would like to consider serving as the lead plaintiff or have any questions about this lawsuit, you may contact Francis P. McConville, Esq. of Labaton Sucharow, at (800) 321-0476, or via email at firstname.lastname@example.org. You can view a copy of the complaint here.