SWK Investors Have Opportunity to Lead Stanley Black & Decker, Inc. Securities Fraud Lawsuit
LOS ANGELES, May 18, 2023 /PRNewswire/ -- The Law Offices of Frank R. Cruz announces that investors with substantial losses have opportunity to lead the securities fraud class action lawsuit against Stanley Black & Decker, Inc. ("Stanley" or the "Company") (NYSE: SWK).
Class Period: October 28, 2021 – July 28, 2022
Lead Plaintiff Deadline: May 23, 2023
If you are a shareholder who suffered a loss, click here to participate.
On April 28, 2022, Stanley disclosed that its net sales for its Tools and Outdoor segment had dropped in the first fiscal quarter of 2022 and that the Company was revising its earnings per share guidance for fiscal year 2022 in response. The Company also revealed that its gross margin for the quarter dropped "610 basis points from prior year as price realization was more than offset primarily by commodity inflation, higher supply chain costs to serve demand and lower volumes."
On this news, Stanley's stock price fell $12.01, or 8.6%, to close at $127.13 on April 28, 2022, thereby injuring investors.
Then, on July 28, 2022, before the market opened, Stanley released its second quarter 2022 financial results, disclosing that due to "significantly slower demand," sales volumes had shrunk by double digits and that the Company's net income at $87.6 million, compared to $459.5 million the year prior. Stanley also announced that it was cutting its 2022 earnings per share guidance by nearly half.
On this news, Stanley's stock price fell $18.78, or 16.1%, to close at $98.58 per share on July 28, 2022, thereby injuring investors further.
The complaint filed alleges that, throughout the Class Period, Defendants failed to disclose to investors that: (1) rising interest rates, inflation, and trends in returning to work away from home were in fact quickly eroding then-heightened demand for Stanley's tools and outdoor products; (2) the heightened, extraordinary demand Stanley had enjoyed as a result of the COVID-19 pandemic in 2021 into 2022 was returning to 2019 pre-pandemic levels; (3) Stanley's operations were already showing signs of slowing demand; (4) as a result of reorganization, share repurchasing, and dividend growth, Stanley lacked the cash to react with agility to changes in demand; and (5) as a result of Stanley's inability to react to a sharp decline in demand, the Company's results and metrics, particularly sales volume, were severely negatively impacted; and (6) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
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SOURCE The Law Offices of Frank R. Cruz, Los Angeles
