A flurry of US law firms has filed class action suits against Evoqua, after the company signalled worse-than-expected profits for the full-year 2018.
The lawsuits seek to answer whether Evoqua misled investors regarding disruptions to projects, and the potential resulting losses to profitability.
Evoqua’s shares closed down by 34.6 per cent at $9.02 on 30 October 2018, after it reported that annual revenues would be in the range $1.33 billion to $1.34 billion, up 7 per cent — but lower than the $1.36 billion stated earlier. Earnings per share were earlier pegged at $0.70, and no further update given.
At the time, chief executive Ron Keating said he was “disappointed” by the results, and blamed the performance on “acquisition system integration issues, supply chain disruptions influenced by tariffs, and an extended delay on a large aquatics project.”
The company simultaneously initiated a cost-saving restrucure, creating two new operating divisions; Integrated Solutions and Services, and Applied Product Technologies.