#USA #New York #securities lawsuit #Faruqi & Faruqi #Atkore

Urgent Investor Alert for Atkore, Inc.

Faruqi & Faruqi, LLP, a prominent national law firm specializing in securities, has announced an investigation into Atkore, Inc. following potential claims related to the company's recent financial losses. This inquiry raises significant concerns for investors, particularly those who have incurred losses exceeding $50,000 between February 1, 2024, and February 3, 2025.

The firm's securities litigation partner, James (Josh) Wilson, is actively encouraging affected investors to come forward and explore their legal options during this crucial time. The deadline for potential lead plaintiffs in a federal securities class action against Atkore is approaching quickly, with a filing date set for April 23, 2025.

Background on the Investigation

The crux of the investigation revolves around allegations that Atkore and its executives breached federal securities laws by providing false or misleading statements. Specifically, the complaint outlines that the company engaged in a price-fixing scheme that artificially inflated the prices of PVC pipes, ultimately misleading shareholders about the company's financial health and operational prospects.

Key Allegations

1. Price-Fixing Scheme: Atkore was involved in an arrangement that manipulated the market, inflating PVC pipe prices to unsustainable levels.
2. Misrepresentation of Financial Health: The company allegedly misled investors about its profitability and potential growth, making statements that proved to be materially false once the truth surfaced.
3. Significant Financial Irregularities: As evidence of the scheme came to light, it became clear that Atkore's financial performance was severely impacted, with a notable decline in both sales and earnings guidance.

The Turn of Events

On February 4, 2025, following the company's first-quarter financial results announcement, the truth began to emerge. Atkore reported net sales of $661.6 million, falling short of analysts' expectations of $680.7 million. Furthermore, the company reduced its adjusted earnings per share (EPS) and EBITDA guidance, indicating a dire outlook for its PVC business—an admission that raised eyebrows among investors and market analysts alike.

CFO Deitzer acknowledged during the earnings call that the company's PVC product category faced a mid-single-digit decline, contrasting sharply with previous years' performances. This transparency came too late for many investors, as the stock price dropped significantly—witnessing a nearly 20% decrease in just one day.

What Affected Investors Should Do

For investors who have suffered losses related to Atkore's stock, it’s crucial to act quickly. Faruqi & Faruqi urges individuals to either participate in the class action or at least consider reaching out to the firm to secure their rights. This is vital for influencing the outcome of the class action and possibly reclaiming some of their losses.

Investors who are eligible to serve as lead plaintiffs must demonstrate their financial stake in the case and can either appoint their legal representation or rely on the firm to guide them through this process. Each member of the class maintains the right to share in any financial recoveries, regardless of their decision regarding lead plaintiff status.

Contact Information

Faruqi & Faruqi encourages anyone with information pertaining to Atkore's practices—including former employees and whistleblowers—to come forward. The firm is open to discussing potential claims and addressing any concerns related to past and current issues. They can be reached directly by calling 877-247-4292 or 212-983-9330 (Ext. 1310).

For ongoing updates and further information regarding the Atkore investigation and potential class action, please visit www.faruqilaw.com/ATKR.

Conclusion

As the situation develops, further scrutiny is expected both from legal perspectives and among investors. The case signifies the importance of vigilance in investor relations and the need for transparency from public companies. For those impacted, exploring legal avenues may prove essential in the pursuit of justice and recovery of losses.