Updated: January 7, 2021
On July 10, 2018, Labaton Sucharow LLP was appointed to an executive committee to jointly litigate this securities class action against ADT Inc. (“ADT”) in connection with ADT’s initial public offering (“IPO”) that raised approximately $1.47 billion in gross proceeds. ADT is one of the oldest home security companies in the United States and the self-described “market leader” in professionally-monitored home security systems. The action is pending in Florida state court.
On August 24, 2018, the lead plaintiffs filed a consolidated class action complaint alleging that the IPO’s registration statement and prospectus made material misstatements and omissions in violation of the federal securities laws. In particular, the complaint alleges that ADT failed to disclose that at the time of the IPO that ADT was involved in a litigation with an undisclosed competitor called Ring over the ownership of a new security software platform. The complaint also alleges that the IPO’s offering materials omitted the fact that ADT’s traditional competitors were being displaced by do-it-yourself offerings from technology companies like Google, Amazon, and Apple. When the action was filed, ADT’s stock was trading 35.9 percent below the IPO price.
On February 25, 2019, defendants moved to dismiss the Action. Lead plaintiffs opposed this motion. On July 26, 2019, the Court issued an order denying in part defendants’ motion to dismiss, allowing the case to proceed on the merits.
On September 15, 2020 the parties entered into a stipulation to settle the action for $30 million. On January 7, 2021, the Court approved the settlement.
The case is In re ADT Inc. Shareholder Litigation, Case No. 502018CA003494XXXXMB-AG.