BENSALEM, Pa. -- (Business Wire)
Law Offices of Howard G. Smith announces that a class action lawsuit has
been filed on behalf of investors who purchased Revlon, Inc. (“Revlon”
or the “Company”) (NYSE: REV)
securities between March 12, 2015 and March 28, 2019, inclusive
(the “Class Period”). Revlon investors have 60 days from the date of
this notice to file a lead plaintiff motion.
Investors suffering losses on their Revlon investments are encouraged to
contact the Law Offices of Howard G. Smith to discuss their legal rights
in this class action at 888-638-4847 or by email to firstname.lastname@example.org.
On March 18, 2019, Revlon announced its unaudited fourth quarter and
full year 2018 financial results, as well as stating it spotted a
"material weakness" in its internal controls over financial reporting
for 2018, therefore delaying the filing of the 10-K with the SEC.
On this news, shares of Revlon fell $1.33, or nearly 7%, to close at
$18.02 on March 19, 2019, thereby injuring investors.
Then, on March 28, 2019, the Company filed its annual report with the
SEC for the period ended December 31, 2018, in which it revealed that,
due to ERP-related disruptions, Revlon was unable to fulfill product
shipments representing approximately $64 million in net sales and
incurred $53.6 million incremental charges to remediate the decline in
customer service levels.
On this news, shares of Revlon fell $1.33, or over 6%, to close at
$19.38 on March 29, 2019, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the
Class Period, Defendants made materially false and/or misleading
statements, as well as failed to disclose material adverse facts about
the Company’s business, operations, and prospects. Specifically,
Defendants failed to disclose to investors: (1) that the Company failed
to create measures to monitor its enterprise resource planning (“ERP”)
system appropriately once implemented; (2) that the Company failed to
design, implement, and consistently operate effective process-level
controls to ensure that it appropriately (a) recorded and accounted for
inventory, accounts receivable, net sales, and cost of goods sold, (b)
reconciled balance sheet accounts, (c) reviewed and approved the
complete population of manual journal entries, and (d) used complete and
accurate information in performing manual control, which constituted a
material weakness in its internal controls over financial reporting; (3)
that, as a result of the poor preparation and planning of the
implementation of the ERP system, the Company was unable to fulfill
product shipments of approximately $64 million of net sales and incurred
$53.6 million of incremental charges to remediate the decline in
customer service levels; and (4) that, as a result of the foregoing,
Defendants’ positive statements about the Company’s business,
operations, and prospects, were materially misleading and/or lacked a
If you purchased shares of Revlon, have information or would like to
learn more about these claims, or have any questions concerning this
announcement or your rights or interests with respect to these matters,
please contact Howard G. Smith, Esquire, of Law Offices of Howard G.
Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by
telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to email@example.com,
or visit our website at www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some
jurisdictions under the applicable law and ethical rules.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190515005859/en/
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
Source: Law Offices of Howard G. Smith
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