WASHINGTON, D.C. May 15, 2019 – Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine whether Mueller Water Products, Inc. (“Mueller Water” 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 Southern District of New York by another law firm on behalf of purchasers of the common stock of Mueller Water Products, Inc. (NYSE: MWA) between May 9, 2016 and August 6, 2018, inclusive (the “Class Period”).
The complaint alleges that Mueller Water and certain of its officers and directors (“Defendants”) misrepresented and/or failed to disclose that: (1) the Company lacked adequate testing for product quality; (2) certain products with radio components were susceptible to fail prematurely; (3) as a result, the Company was reasonably likely to incur increased expenses, including warranty costs; (4) these costs would materially impact the Company’s financial statements; (5) the Company lacked adequate internal controls over warranty costs and estimates; and (6) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
Mueller Water announced what it claimed was a “discrete” warranty charge of $9.8 million in its fiscal quarter ended March 31, 2017. The Company assured investors that it had resolved the issue that led to that charge and said that it did not expect to report any further warranty charges of “a large magnitude like this” in the future. Notwithstanding these assurances, on August 6, 2018, Mueller Water reported a $14.1 million warranty charge. The price of Mueller Water shares fell from $12.49 to $11.74 on August 7, 2018.
Cohen Milstein encourages all investors who purchased Mueller Water common stock between May 9, 2016 and August 6, 2018, or former employees with information concerning this matter to contact the firm.
If you are a Mueller Water 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 June 10, 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
# # #