Pomerantz LLP announces that a class action lawsuit has been filed against Caterpillar, Inc. (“Caterpillar” or the “Company”) and certain of its officers. The class action, filed in United States District Court, Northern District of Illinois, and docketed under 17-cv-01713, is on behalf of a class consisting of investors who purchased or otherwise acquired Caterpillar securities, seeking to recover compensable damages caused by defendants’ violations of the Securities Exchange Act of 1934.
If you are a shareholder who purchased Caterpillar securities between February 19, 2013 and March 1, 2017, both dates inclusive, you have until May 2, 2017 to ask the Court to appoint you as Lead Plaintiff for the class. To discuss this action, contact Robert S. Willoughby at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Caterpillar designs, manufactures, and markets construction, mining, and forestry machinery. The Company also manufactures engines and other related parts for its equipment, and offers financing and insurance. Caterpillar distributes its products through a worldwide organization of dealers.
The complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Caterpillar unlawfully used foreign subsidiaries to avoid paying billions of dollars in U.S. taxes; (ii) discovery of the foregoing conduct would subject the Company to heightened regulatory scrutiny and potential criminal sanctions; and (iii) as a result of the foregoing, Caterpillar’s public statements were materially false and misleading at all relevant times.
On March 2, 2017, law enforcement officials executing search warrants raided the Company’s facilities in Peoria, Illinois. Later that day, the Company issued a statement discussing the federal law enforcement raids to its facilities, stating: “We believe the execution of this search warrant is regarding, among other things, export filings that relate to the CSARL matter,” referring to its Swiss subsidiary Caterpillar SARL. Bloomberg News subsequently reported that the warrants “sought evidence related to potential crimes, including ‘failure to file or submitting false electronic export information’ and ‘false and misleading financial reports and statements.’”
On this news, Caterpillar’s share price fell $4.22, or 4.28%, to close at $94.36 per share on March 2, 2017.