Coughlin Stoia Geller Rudman & Robbins LLP last week announced that a class action has been commenced on behalf of an institutional investor in the United States District Court for the District of Connecticut on behalf of purchasers of the common stock of Terex Corp. between Feb. 20, 2008 and Sept. 4, 2008.
The complaint charges Terex and certain of its officers and executives with violations of the Exchange Act. Terex operates as a diversified global manufacturer of a range of equipment for use in various industries, including the construction, infrastructure, quarrying, surface mining, shipping, transportation, refining and utility industries.
The complaint alleges that, throughout the Class Period, defendants failed to disclose material adverse facts about the company’s true financial condition, business and prospects. Specifically, the complaint alleges that defendants failed to disclose: that the company failed to properly and timely account for impaired assets in its “Construction” and “Roadbuilding, Utility Products and Other” segments; that the company was experiencing declining demand for its products in its Construction, Materials Processing and Aerial Work Platforms segments; and as a result , defendants lacked a reasonable basis for their positive statements about the company and its prospects.
On Sept. 4, 2008, Terex announced that it was updating its “2008 full-year guidance and providing quarterly guidance due to changing market conditions.” In response to these statements, which revealed various adverse factors negatively impacting Terex’s business, the price of Terex stock fell $9.30 per share, or 20 percent, to close at $38.02 per share.
Plaintiff seeks to recover damages on behalf of all purchasers of Terex common stock during the Class Period. The plaintiff is represented by Coughlin Stoia, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.