FOR IMMEDIATE RELEASE
Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine whether Apogee Enterprises, Inc. (“Apogee” or the “Company”) and certain of its officers and directors made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
A class action lawsuit was filed in the U.S. District Court for the District of Minnesota by another law firm on behalf of purchasers of the common stock of Apogee Enterprises, Inc. (NASDAQ: APOG) between June 28, 2018 and September 17, 2018, inclusive (the “Class Period”).
The complaint alleges that Apogee and certain of its officers and directors (“Defendants”) misrepresented and/or failed to disclose that: (1) Apogee lacked the required labor force in place to ramp-up its production; (2) Apogee was unable to hire, train and retain new employees; (3) Apogee’s productivity and margins would be negatively impacted; and (4) as a result, Defendants’ statements about the Company’ business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
On September 18, 2018, Apogee announced second quarter 2018 financial results, reporting operating income of $1.7 million for its glass segment, a decline from the $10.3 million in the previous year. Apogee explained:
The lower operating margin was primarily driven by significantly increased labor costs, lower productivity, and higher cost of quality, as the segment was challenged to efficiently ramp-up production to meet the higher than expected, short lead-time customer demand.
Apogee stated that its glass segment was overwhelmed with orders and unable to meet rising demands. As a result, Apogee reduced its full-year guidance, “primarily due to lower than expected second quarter results and decreased profit expectations for Architectural Glass.” The Company now anticipated revenue growth of 8 to 10 percent and earnings of only $3.00 to $3.20 per diluted share, down from $3.35 to $3.55 per share. During its earnings call held the same day, Apogee admitted it was ill-prepared for the challenge of ramping-up production in its glass factories: “[u]nfortunately, the slope of this recovery was substantially steeper than we expected, and we struggled to rapidly ramp up production levels in our factories.” The price of Apogee shares fell from $48.22 on September 17, 2018 to $42.28 on September 18, 2018 to $41.76 on September 19, 2018.
Cohen Milstein encourages all investors who purchased Apogee common stock between June 28, 2018 and September 17, 2018, or former employees with information concerning this matter to contact the firm.
If you are an Apogee shareholder and would like to discuss your right to recover for your economic loss, you may, without any cost or obligation, call Cohen Milstein’s Managing Partner, Steven J. Toll at (888) 240-0775 or (202) 408-4600, or email him at email@example.com. If you wish to serve as lead plaintiff, you must move the Court no later than January 4, 2019 to request appointment. Any member of the proposed class may retain Cohen Milstein or other attorneys to serve as your counsel in this action, or you may do nothing and remain an absent class member.
Cohen Milstein has significant experience in prosecuting investor class actions and actions involving securities fraud, and is active in major litigation pending in federal and state courts throughout the nation. Cohen Milstein has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total billions of dollars. Prior results do not guarantee a similar outcome. For more information visit www.cohenmilstein.com.
If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:
Cohen Milstein Sellers & Toll PLLC
1100 New York Avenue, N.W.
Washington, D.C. 20005
Telephone: (888) 240-0775 or (202) 408-4600
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