Florida Aerospace Company Facing Class Action Fraud Lawsuit
According to a report from WFLA News Channel 8, a Florida-based aerospace company is facing a class action securities fraud lawsuit. The claim contends that Redwire Corporation, a company based in Jacksonville, improperly misled its investors causing tangible financial harm. Here, our West Palm Beach deceptive & unfair trade practices lawyers provide a more detailed review of the class action fraud dispute.
Background: Accounting Issues, Delayed Release of Earnings Report
The Redwire Corporation is an American-owned aerospace manufacturer with a main headquarters in Duval County, Florida. Initially, the company was scheduled to release its third quarter earnings for 2021 on November 10th. However, five days before the earnings announcement was scheduled, the company informed investors and the public that the earnings report would be delayed for accounting issues.
Sharp Stock Price Decline After the Delay of the Third Quarter Earnings Report
Redwire Corporation is a publicly traded company listed on the New York Stock Exchange (NYSE). On November 5th, 2021—the day before the Redwire Corporation announced the accounting issue—the company’s stock price closed at $12.76 per share. After the announcement, there had been a steady decline in the share price. As of December 28th, 2021, Redwire Corporation is listed at $6.51 per share—a fall of nearly 50 percent.
Allegations: Failure to Notify Investors in a Timely Manner, Accounting Misstatements
In a class action securities fraud lawsuit filed in the United States District Court for the Northern District of Florida, representatives for shareholders have raised a number of different specific allegations against the Redwire Corporation. Among other things, the plaintiffs contend that the company’s leaders:
- Failed to notify investors of the accounting issue and delay in a timely manner;
- Had improper accounting practices in place that contributed to the problem; and
- Made positive statements regarding the company’s future financial prospects that were materially misleading and/or that lacked a reasonable basis.
Businesses, Consumers, and Investors are Protected By a Wide Range of Regulations
Fraud claims are complicated. Depending on the specific nature of the allegations, a fraud victim may have a cause action under one or more of several different state and federal laws. For investors, the primary protection may come from federal securities law. For businesses and consumers engaged in commercial transactions in Florida, the strongest protection may come from the state’s Deceptive and Unfair Trade Practices Act (The FDUTPA). If you have any questions about your rights or your options after being defrauded, an experienced attorney can help you pursue justice and compensation.
Get Help From an FDUTPA Lawyer in Southeastern Florida
At Pike & Lustig, LLP, our Florida business and consumer fraud attorneys have extensive experience handling complex commercial cases. If you have any questions about business fraud, consumer fraud, or FDUTPA claims, we can help. Give us a call or send us a direct message to arrange a strictly confidential appointment with a lawyer. We provide FDUTPA representation throughout Southeast Florida, including in West Palm Beach, Jupiter, Fort Lauderdale, Miami, and Miami Beach.