Law firm files suit against Terex
The law firm of Izard Nobel has announced that it has filed a lawsuit seeking class action status, in the United States District Court for the District of Connecticut on behalf of all those who purchased Terex shares between February 20th, 2008 and September 4th, 2008 (the "Class Period").
The Complaint charges that Terex and certain of its executives and officers violated federal securities laws by failing to disclose material adverse facts about the company's true financial condition, business and prospects. Specifically, the Complaint alleges:
1.That the Company failed to properly and timely account for impaired assets in its "Construction" and "Road building, Utility Products and Other" segments;
2.That Terex was experiencing declining demand for its products in its Construction, Materials Processing and Aerial Work Platforms segments; and
3.As a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the company and its prospects.
On September 4th, 2008, Terex announced that it was updating its "2008 full year guidance and providing quarterly guidance due to changing market conditions."
In response to these statements which revealed various adverse factors negatively impacting Terex's business, the price of Terex stock fell $9.30 per share, or 20 percent, to close at $38.02 per share.