Entwistle & Cappucci LLP (Entwistle & Cappucci) announced that the firm was appointed co-lead counsel in a consolidated class action against Resideo Technologies, Inc. (Resideo) and certain of Resideos executive officers (collectively, the Defendants) pending in the United States District Court for the District of Minnesota. The class action asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 arising from Honeywell International Inc.s (Honeywell) 2018 spin-off of Resideo.
The appointment of co-lead counsel is the latest development in this ongoing complex securities litigation. On January 7, 2020, the firm filed a securities class action complaint on behalf of all persons or entities that purchased or otherwise acquired common stock of Resideo during the period October 15, 2018 through October 22, 2019, inclusive (the Class Period), and were damaged thereby (the Class). Concerning the appointment, Entwistle & Cappucci Senior Partner Vincent R. Cappucci stated, We are very pleased to lead this important litigation to address shareholder claims.
The complaint alleges that Resideo failed to disclose to the investing public that one of the two business segments that would comprise Resideo had been combined piecemeal by Honeywell from unrelated businesses and, consequently, contained severe product, supply chain and governance problems. The complaint further alleges that because of these problems, almost nothing the Defendants said about the outlook for that section of the business was accurate and, in fact, the Defendants had no reasonable basis for the financial guidance they issued before and during the Class Period. As a direct result of the Defendants alleged securities fraud violations, Class members that purchased or otherwise acquired common stock of Resideo during the Class Period did so at prices that did not reflect the material nonpublic information known to Defendants. Lead Plaintiffs seek an award of damages and prejudgment interest on behalf of the Class.
The team at Entwistle & Cappucci prosecuting the litigation includes partners Andrew J. Entwistle, Vincent R. Cappucci, Joshua K. Porter and Brendan J. Brodeur and associates Sean M. Riegert and Jessica A. Margulis.
The case is In re Resideo Technologies, Inc. Securities Litigation, Case No. 19-cv-02863, U.S. District Court, District of Minnesota.
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Entwistle & Cappucci is a national law firm providing exceptional legal representation to clients globally in the most complex and challenging legal matters. Our practice encompasses all areas of litigation, including securities, antitrust, corporate transactions, general corporate and commercial, creditors rights and bankruptcy, corporate governance and fiduciary duty, government affairs, insurance, investigations and white collar defense. Our clients include public and private corporations, major hedge funds, public pension funds, governmental entities, leading institutional investors, domestic and foreign financial services companies, emerging business enterprises and individual entrepreneurs.