Updated: June 27, 2018
Status: Ongoing Case
On July 13, 2016, Labaton Sucharow was appointed as co-lead counsel in this securities class action against Precision Castparts Corp. (PCC) and certain individual defendants. Based in Portland, Oregon, PCC is an aviation parts manufacturing conglomerate that produces complex metal parts primarily marketed to industrial and aerospace customers. It was recently acquired by Berkshire Hathaway for $37.2 billion in January 2016, the largest acquisition to date for the holding company.
The lead plaintiffs filed an amended complaint on September 26, 2016, which alleges that PCC made numerous false and misleading statements regarding company’s financial prospects. Specifically, the amended complaint alleges that the defendants failed to disclose that the company relied on pulling-in sales from customers at the end of each quarter, was losing market share to competitors, and was suffering from weakened demand for its products on a long-term basis.
On June 27, 2017, the magistrate judge recommended that the district court deny the defendants’ motion to dismiss. The magistrate report concluded that “Plaintiffs have adequately alleged specific facts to show that PCC’s stock price was initially inflated as a result of misleading reports by Defendants that PCC was on track for the 2016 EPS targets, and subsequently declined in response to PCC’s acknowledgements that there were mistaken assumptions and failures to communicate material information to investors.” On August 22, 2017, the district court adopted, in full, the magistrate judge’s recommendations over the defendants’ objection.
On June 27, 2018, the court granted class certification. The deadline to exclude yourself from the class is May 3, 2019. There has been no recovery or settlement in the case, which continues to be litigated.
The case is Murphy v. Precision Castparts Corp., No. 16-cv-00521 (D. Or.). The lead plaintiffs are Oklahoma Firefighters Pension and Retirement System and AMF Pensionsförsäkring AB. Labaton Sucharow represents Oklahoma Firefighters Pension and Retirement System. The defendant is Precision Castparts Corp. and certain individual defendants.