INVESTOR ALERT: Edelson Lechtzin LLP Urges Stanley Black & Decker, Inc. (NYSE: SWK) Shareholders with Substantial Losses to Consider Seeking Leadership in the Securities Fraud Class Action
NEWTOWN, PA, April 13, 2023 — The law firm of Edelson Lechtzin LLP is investigating securities fraud claims on behalf of all purchasers and holders of Stanley Black & Decker, Inc. (“Stanley” or the “Company”) (NYSE: SWK) common stock between October 28, 2021, and July 28, 2022, both dates inclusive (the “Class Period”).
Investors who purchased Stanley Black & Decker, Inc. common stock may move the U.S. District Court for the District of Connecticut to appoint them as lead plaintiff, no later than May 23, 2023. Current holders of Stanley stock may pursue corporate governance reforms. Please contact Edelson Lechtzin LLP at 844-696-7492 to discuss your investment losses, or by e-mail at [email protected]. A copy of the class action complaint can be viewed HERE.
Background on Stanley Black & Decker, Inc.
Stanley Black & Decker (f/k/a Stanley Works), a manufacturer industrial tools and household hardware, has provided the tools and solutions “to get the job done” since 1843.
The Securities Fraud Claims
The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) rising interest rates, inflation, and trends in returning to work away from home were rapidly eroding then-heightened demand for Stanley’s tools and outdoor products; (ii) the heightened, extraordinary demand Stanley had enjoyed as a result of the COVID-19 pandemic was returning to pre-pandemic levels; (iii) Stanley’s operations were already showing signs of slowing demand; (iv) due to reorganization, share repurchasing, and dividend growth, Stanley lacked the cash to react with agility to changes in demand; and (v) 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.
On April 28, 2022, Defendants issued a set of partial corrective disclosures stating that Stanley’s Tools and Outdoor net sales had dropped in the Company’s first fiscal quarter of 2022, and that Stanley’s gross margin 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 fell 8.6%, or $12.01 per share, from a close of $139.14 per share on April 27, 2022, to a close of $127.13 on April 28, 2022.
Then, on July 28, 2022, before the markets opened, Stanley released its Q2 2022 results revealing that due to “significantly slower demand” and “as the softening of the demand environment accelerated rapidly during the last portion of the quarter” they were preparing for demand to normalize closer to 2019 levels for the rest of 2022. The Company revealed that their net income for its second quarter had plummeted to $87.6 million compared to $459.5 million in the year prior, and that Stanley was cutting its 2022 earnings per share guidance by almost half.
On the news that demand had declined and Stanley was cutting its 2022 earnings guidance by nearly half, Stanley’s common stock, which had closed at $117.45 per share the evening prior, fell to a closing price of $98.58 per share on July 28, 2022, on heavy trading volume, representing over a 16% day-over-day drop.
For more information, please contact:
Marc H. Edelson, Esq.
Eric Lechtzin, Esq.
EDELSON LECHTZIN LLP
411 S. State Street, Suite N-300
Newtown, PA 18940
Phone: 844-696-7492 or 215-867-2399 ext. 1
Email: [email protected]
Email: [email protected]
Edelson Lechtzin LLP is a national class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and dangerous and defective drugs and medical devices.
This press release may be considered Attorney Advertising in some jurisdictions. No class has been certified in this case, so you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. Your ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.