Updated: November 6, 2019
Status: Ongoing Case
On April 16, 2019, Labaton Sucharow LLP commenced this action in Pennsylvania state court on behalf of an individual investor. On July 19, 2019, Labaton Sucharow was appointed co-lead counsel to jointly prosecute the action against BrightView Holdings, Inc. (“BrightView”) in connection with BrightView’s initial public offering (“IPO”).
On May 31, 2019, Labaton Sucharow filed an Amended Class Action Complaint for Violation of the Federal Securities Laws (the “Complaint”) asserting claims under Sections 11 and 15 of the Securities Act of 1933. The Complaint alleges that the registration statement and prospectus used to conduct the June 28, 2018 IPO were false and misleading for failing to disclose that BrightView was experiencing a labor shortage and was saddled with substantial unprofitable contracts. BrightView also failed to disclose that before the IPO, the Company engaged in a Managed Exit initiative to terminate or exit many of these unprofitable contracts and would continue to do so well into 2019. By February 8, 2019, BrightView’s stock price had fell to $12.75—42% below the price at which the stock was sold to the investing public in the IPO.
On August 12, 2019, Defendants filed preliminary objections seeking dismissal of the action and a petition seeking to stay the action. On November 6, 2019, the Court issued an order overruling the preliminary objections in their entirety and denying defendants’ requested stay. The case is now proceeding.
The case is In re BrightView Holdings, Inc. Securities Litigation, No. 2019-07222. Labaton Sucharow represents a retail investor as co-lead plaintiff. The defendants are BrightView, certain of its officers and directors, its controlling shareholders, and its IPO underwriters.