The law firm of Kessler Topaz Meltzer & Check, LLP reminds that an investor securities fraud class action lawsuit has been filed against Honeywell International Inc. (NYSE: HON) (Honeywell) on behalf of purchasers of Honeywell securities between February 9, 2018 through October 19, 2018, inclusive (the Class Period).
Honeywell investors who purchased securities during the Class Period may, no later than January 2, 2019, seek to be appointed as a lead plaintiff representative of the class.
Investors who wish to discuss this securities fraud class action or request additional information about the lawsuit are encouraged to contact Kessler Topaz Meltzer & Check attorneys James Maro, Jr. or Adrienne Bell at (888) 299-7706 or online at: www.ktmc.com/honeywell-securities-class-action
According to the complaint, Honeywell is a multinational conglomerate that makes a variety of commercial and consumer products, engineering services, and aerospace systems. Honeywell previously owned Bendix Friction Materials (Bendix), a manufacturer of automotive, truck and industrial brakes. Despite known health hazards, Bendix used asbestos in its brake- and clutch-pad products until 2001. Honeywell sold Bendix in 2014.
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The Class Period commences on February 9, 2018, when Honeywell filed an annual report on Form 10-K with the SEC, announcing the companys financial and operating results for the quarter and year ended December 31, 2017, and reported asbestos related liabilities attributable to Bendix of $616 million as of December 31, 2017.
On August 23, 2018, Honeywell disclosed that the Companys Bendix asbestos-related liability is estimated to be $1,693 million as of June 30, 2018. This is $1,083 million higher than the Companys prior estimation.
According to the complaint, on October 19, 2018, Honeywell issued a press release announcing its third quarter 2018 earnings, and filed its quarterly report with the SEC for the quarter ended September 30, 2018. In its quarterly report, Honeywell disclosed that the SECs Division of Corporate Finance had reviewed Honeywells prior accounting for liability for unasserted Bendix-related asbestos claims, and that [o]n September 13, 2018, following completion of Corporation Finances review, the SEC Division of Enforcement advised that it has opened an investigation related to this matter. Further, Honeywell revised its Bendix-related asbestos liability, disclosing that [t]he Companys revised estimated asbestos-related liabilities are now $2,610 million as of December 31, 2017, which is $1,087 million higher than the Companys prior estimate.
Following this news, Honeywells stock price fell $1.72 per share, or 1.11%, to close at $153.47 per share on October 19, 2018. Over the following three trading sessions, Honeywells stock price fell by an additional $7.87, or 5.3%, to close at $140.72 per share on October 24, 2018.
The complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (i) Honeywells Bendix asbestos-related liability was greater than initially reported; (ii) the company maintained improper accounting practices in connection with its Bendix asbestos-related liability; and (iii) as a result, Honeywells public statements were materially false and misleading at all relevant times.
Honeywell investors may, no later than January 2, 2019, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class members claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
280 King of Prussia Road
Radnor, PA 19087