Publicly available records indicate that a class action lawsuit has been filed on behalf of investors in Revolution Lighting Technologies (NASDAQ:RVLT) in connection to alleged violations of securities laws by RVLT. Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments made in Revolution Lighting Technologies from March 14, 2014, and November 14.
The class action complaint specifically alleges that during the period in question, RVLT provided false and/or misleading material information and/or failed to disclose adverse material information to the public in connection with its initial public offering, chiefly: that the company was not properly recognizing revenue in connection to certain of its transactions; and that consequently the company’s financial statements contained inaccurate information; that the company did not have proper internal controls governing its financial reporting practices; that this stood to expose the company to scrutiny from regulatory authorities which could lead to significant expenses; and that consequently the company’s statements to the public during the relevant period were misleading. The complaint notes that the company disclosed on October 17, 2018 that its Q3 2018 revenue would be less than its previous guidance had indicated, and that its CEO, Robert LaPenta, was willing to acquire all RVLT common stock for $2.00/share. Following this announcement, RVLT declined in value more than 38%, or $0.98/share, closing at $1.58/share on that day and causing investors to suffer losses. Two days later, on October 19, 2018, Revolution Lightning announced the existence of an SEC probe into its revenue recognition for transactions that took place from 2014 through Q2 2018, after which RVLT declined in value by more than 10%, or $0.16/share, closing at $1.43/share on October 22, 2018, causing additional harm to investors. When the company disclosed, on November 14th, 2018, that its CEO had offered to acquire all remaining outstanding RVLT common stock at a price of $1.50/share, partially in connection with the SEC probe, RVLT declined in value by almost 40%, or $0.55/share, closing at $0.85/share on November 15, 2018.
According to the company’s website, Revolution Lighting Technologies “is a leader in the design, manufacture, marketing, and sale of LED lighting solutions focusing on the industrial, commercial and government markets in the United States, Canada, and internationally.” The company offers a “comprehensive advanced product platform” using what it describes as “advanced” technologies, and is involved in the design, engineering and manufacturing of interior and exterior lighting products. It trades on the Nasdaq exchange under the symbol RVLT.