NYSE: AOS Long Term Investor Notice: Investigation of Potential Wrongdoing at A。 O。 Smith Corporation
An investigation on behalf of current long term investors in A。 O。 Smith Corporation (NYSE: AOS) shares over possible breaches of fiduciary duty by certain officers and directors was announced。
San Diego, CA -- (SBWIRE) -- 03/04/2020 -- Certain directors of A. O. Smith Corporation are under investigation over potential breaches of fiduciary duties.
Investors who are current long term investors in A. O. Smith Corporation () shares, have certain options and should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
The investigation by a law firm for investors in stocks follows a lawsuit filed against A. O. Smith Corporation over alleged securities laws violations. The investigation on behalf of current long term investors in stocks, concerns whether certain A. O. Smith Corporation directors are liable in connection with the allegations made in that lawsuit.
The plaintiff alleges that the Defendants failed to disclose to investors that the Company had undisclosed business connections and entanglements with UTP through which it funneled up to 75% of its China product sales, that the Company had used UTP to engage in channel stuffing by artificially inflating inventories purportedly sold through distributors that were not based on consumer demand, thereby approximately doubling the normal level of inventory at such distributors, that the Company had used its UTP relationship to artificially inflate the sales figures it reported to investors by as much as 8% and to conceal worsening sales trends that the Company was experiencing in China, that the Company's sales growth had been primarily in lower margin products as its higher priced products were being undercut by competition in "second-tier" Chinese cities, causing the Company to experience significant market pressures, that the Company had increased its cash reserves in China to over $530 million in furtherance of its channel stuffing and sales manipulation scheme, encumbering the Company's ability to repatriate the cash for use for capital expenditures, and as a result, the Company's public statements were materially false and misleading at all relevant times.
Those who purchased shares of A. O. Smith Corporation () have certain options and should contact the Shareholders Foundation.
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