SAN DIEGO and VALLEY CITY, Ohio, Oct.
6, 2015 /PRNewswire/ -- Shareholder rights law firm Robbins
Arroyo LLP announces that a securities fraud class action complaint
was filed in the U.S. District Court for the Southern District of
New York. The complaint alleges that officers and directors
of Shiloh Industries, Inc. (NASDAQGS: SHLO) violated the Securities
Exchange Act of 1934 between March 9,
2015 and September 14, 2015,
by making materially false and misleading statements about Shiloh's
business prospects. Shiloh, together with its subsidiaries,
supplies light weighting, as well as noise, vibration, and
harshness solutions to automotive, commercial vehicle, and other
industrial markets in Europe,
Mexico, and the United States.
View this information on the law firm's Shareholder Rights
Blog:
http://www.robbinsarroyo.com/shareholders-rights-blog/shiloh-industries-inc-2
Shiloh Fails to Disclose
Inadequate Controls Over its Financial Reporting
According to the complaint, Shiloh officials failed to disclose
that the company underreported the cost related to its
manufacturing of products and that it engaged in irregular
accounting practices related to surcharges assessed on steel at its
facility in Wellington,
Ohio. The complaint further alleges that the company lacked
adequate controls over financial reporting, and as a result, its
earnings and income were overstated.
On September 9, 2015, Shiloh
announced that it would be unable to timely file its quarterly
report for the period ending July 31,
2015, because of an ongoing internal investigation into the
accounting for certain costs at its Wellington facility. The company further
stated that it expected the aggregate impact on its net income to
be between $2.2 and $2.5
million. On this news, Shiloh's stock fell
$1.84 per share, or 16.7%, to close
at $9.15 per share on September 10, 2015.
Then, on September 14, 2015, the
company issued a press release disclosing its financial results for
the third quarter of 2015, stating that a material weakness existed
in its internal control over its financial reporting and that it
would need to restate its income for prior periods by over
$2 million. On this news,
Shiloh's stock declined $1.68 per
share, or 16%, to close at $8.58 per
share on September 15, 2015.
Shiloh Shareholders Have Legal Options
Concerned shareholders who would like more information about
their rights and potential remedies can contact attorney
Darnell R. Donahue at (800)
350-6003, DDonahue@robbinsarroyo.com, or via the shareholder
information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
shareholder rights law. The firm represents individual and
institutional investors in shareholder derivative and securities
class action lawsuits, and has helped its clients realize more than
$1 billion of value for themselves
and the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a
similar outcome.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
600 B Street, Suite 1900
San Diego, CA 92101
DDonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
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SOURCE Robbins Arroyo LLP