Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Adient plc

NEW YORK–(BUSINESS WIRE)–Robbins
Geller Rudman & Dowd LLP
(http://www.rgrdlaw.com/cases/adient/)
today announced that a class action has been commenced on behalf of
purchasers of Adient plc (NYSE:ADNT) securities during the period
between October 31, 2016 and June 11, 2018 (the “Class Period”). This
action was filed in the Southern District of New York and is captioned Barreto
v. Adient plc, et al.
, No. 18-cv-09116.

The Private Securities Litigation Reform Act of 1995 permits any
investor who purchased Adient securities during the Class Period to seek
appointment as lead plaintiff. A lead plaintiff acts on behalf of all
other class members in directing the litigation. The lead plaintiff can
select a law firm of its choice. An investor’s ability to share in any
potential future recovery is not dependent upon serving as lead
plaintiff. If you wish to serve as lead plaintiff, you must move the
Court no later than 60 days from today. If you wish to discuss this
action or have any questions concerning this notice or your rights or
interests, please contact plaintiff’s counsel, Samuel
H. Rudman
or David
A. Rosenfeld
of Robbins Geller at 800/449-4900 or 619/231-1058, or
via e-mail at djr@rgrdlaw.com. You
can view a copy of the complaint as filed at http://www.rgrdlaw.com/cases/adient/.

The complaint charges Adient and certain of its officers with violations
of the Securities Exchange Act of 1934. Adient designs, engineers, and
manufactures automotive seating for all vehicle classes and all major
original equipment manufacturers and is one of the largest global
automotive seating suppliers in the world.

The complaint alleges that from the date of its formation, Adient and
certain of its senior executives highlighted improvements in the
efficiency of the Company’s capital-intensive metals business (a/k/a the
SS&M business) as a key driver of its success. For example, defendants
repeatedly emphasized to investors that the Company was “solidly on
track” to deliver 200-basis-point margin expansion by 2020, which was
dependent in large part on operational and financial improvements in
Adient’s core SS&M business. This statement and others were materially
false and misleading, omitted information reasonable investors would
consider important, and/or lacked a reasonable basis because,
unbeknownst to investors, Adient’s core SS&M business faced significant
operational problems such that the repeatedly touted 200-basis-point
margin expansion was not “on track” at any point during the Class
Period. As a result of defendants’ false statements and/or omissions,
Adient securities traded at artificially inflated prices during the
Class Period, with its share price reaching a high of $85.93 per share.

On January 17, 2018, defendants disclosed that Adient’s “near-term
results [were] being significantly impacted by SS&M.” Adient’s share
price fell nearly 10% on this news. On January 29, 2018, defendants
announced disappointing financial results for Adient’s first quarter of
2018. Defendants blamed the results on problems in the SS&M business,
but stated that they were still committed to “deliver 200 basis points
of consolidated adjusted EBIT margin improvement by the end of 2020” and
were “examining the composition of these 200 basis points . . . . [I]f
SS&M . . . is incapable of delivering the 100 to 200 basis points of
improvement by 2020, we’ll look to execute other parts of – other things
within the rest of our organization to offset the shortfall.” This news
drove the price of Adient shares down $5.53 per share, or about 7.6%, to
close at $66.77 per share. On May 3, 2018, defendants announced a $279
million net impairment charge related to the SS&M business and admitted
that “the 200 basis points of margin expansion . . . is no longer going
to be achievable.” On this news, Adient shares fell approximately 10%,
to close at $55.84 per share.

Then, on June 11, 2018, Adient announced (without explanation) the
sudden and immediate resignation of its CEO and slashed its earnings
guidance. On this news, the price of Adient shares fell another $8.88
per share to close at $48.10 per share – a one-day decline of nearly 16%
and a decline of 44% from the shares’ Class Period high.

Plaintiff seeks to recover damages on behalf of all purchasers of Adient
securities during the Class Period (the “Class”). The plaintiff is
represented by Robbins Geller, which has extensive experience in
prosecuting investor class actions including actions involving financial
fraud.

Robbins Geller is one of the world’s leading law firms representing
investors in securities litigation. With 200 lawyers in 10 offices,
Robbins Geller has obtained many of the largest securities class action
recoveries in history. For five consecutive years, ISS Securities Class
Action Services has ranked the Firm in its annual SCAS Top 50 Report as
one of the top law firms in both amount recovered for shareholders and
total number of class action settlements. Robbins Geller attorneys have
helped shape the securities laws and recovered tens of billions of
dollars on behalf of aggrieved victims. Beyond securing financial
recoveries for defrauded investors, Robbins Geller also specializes in
implementing corporate governance reforms, helping to improve the
financial markets for investors worldwide. Please visit http://www.rgrdlaw.com
for more information.

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Contacts

Robbins Geller Rudman & Dowd LLP
Samuel H. Rudman, 800-449-4900
David
A. Rosenfeld
djr@rgrdlaw.com

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