Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Dycom Industries, Inc. (NYSE: DY) have filed a class action complaint against the company’s officers and directors for alleged violations of the Securities Exchange Act of 1934 between November 20, 2017 and August 10, 2018. Dycom provides specialty contracting services in the United States and Canada.
View this information on the law firm’s Shareholder Rights Blog: https://www.robbinsarroyo.com/dycom-industries-inc/
Dycom Accused of Failing to Disclose Permitting Uncertainties
According to the complaint, Dycom misled investors regarding its financial and operating results, the timing of permitting, and the impact of new large projects on gross margins. These misstatements caused Dycom’s stock to increase. The truth came to light when Dycom disappointed investors on May 22, 2018, revealing that its gross margins were approximately 100 basis points below its expectations for the quarter because of the under-absorption of labor and field costs associated with its larger projects and uncertainties related to permitting issues. Months later, Dycom reaffirmed that its large projects were not ramping-up as expected and that Dycom’s core business was in reality not as busy as previously disclosed. Since news of Dycom’s troubles became public, Dycom’s stock fell over 41% to close at $68.09 per share on August 13, 2018, and has yet to recover its value.
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Dycom Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, [email protected], or via the shareholder information form on the firm’s website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Sign up for our FREE portfolio monitoring service, Stock Watch.
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