Will L-3 Communications Holdings, Inc.(NYSE:LLL) Endure Its Current Class Action Lawsuits?

Posted by admin September 18, 2014 0 Comment 2346 views

New York, NY – 09/18/2014 –  HotStockGains provides investors  and traders with valuable trading strategies via text message and email. To join our free text message alerts service just text the word BREAKOUT to 555888 from your cell phone. Just text STOP to unsubscribe if you ever need to.

L-3 Communications Holdings, Inc.(NYSE:LLL)  is currently facing a class action lawsuit that addresses the company’s potential violations of federal securities laws. The suit was made in an effort to recover damages for shareholders who purchased the company’s securities between Apr. 25th, 2013 and Jul. 30th, 2014, who have until Sept. 30th to apply to become lead plaintiffs in the case.

The shareholders attest that L-3 Communications Holdings “made materially false and misleading statements” regarding aspects of the company. Furthermore, the complaint holds that the company’s financial statements contained errors, net sales were overstated and that internal financial reporting was not properly regulated.

Like with some many other cases, L-3 Communications Holdings would not be facing such a case if it were not for the company’s sudden loss in value on July 31st, 2014. On that day, the company fell from its previous closing price of $119.64 to a figure of $104.96. This loss came in response to the company’s disclosure of accounting irregularities, including inappropriately deferred cost overruns. L-3 Communications subsequently fired four of its employees and accepted the resignation of another employee as a result of these irregularities.

Also on July 31st, L-3 Communications’ also released a disappointing second quarter financial results report on that date, which included a net sales figured of $3 billion and a $33 million decrease in operating income from the same period during the previous fiscal year. It is worth noting that the company has since recovered a vast majority of its lost value.

L-3 Communications received a bit of good news on Sept. 15th when the company announced it had received an award from BAE Systems to develop the Haw Oman Training System. The project is designed to prepare Royal Air Force of Oman(RAFO) pilots to fly BAE Systems’ aircraft.

About HotStockGains

I have a confession to make – I am not always right. Sometimes, unfortunately, I will send alerts that experience losses.

I have alerted companies that rallied 100% or even 6,000% (not even joking) in under a week. Likewise, I have alerted companies that tanked 10, 20, sometimes even as much as 30 or 40%. However overall it is about the net result that delivers profits into your portfolio.

Sign up for my free newsletter to receive market insight, tips, and trading strategies on NYSE, NASDAQ, OTCBB and PINK stocks. If you are not satisfied, simply click unsubscribe.

Disclosure:  HotStockGains is not a registered investment adviser and nothing contained in any materials should be construed as a recommendation to buy or sell securities. Investors should always conduct their own due diligence with any potential investment. Always seek help from a professional financial advisor (I am not one). Please visit http://hotstockgains.com/disclaimer/ for complete risks and disclosures.

Write Your Comment