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