A securities class action lawsuit has been filed against Supreme Industries, Inc. (NYSE: STS) by a shareholder in connection to allegations that the company made false or misleading statements about its business and operations between July 22, 2016 and October 21, 2016. The complaint was filed in the United States District Court for the Central District of California. The law firm of Fitapelli Kurta is interested in hearing from aggrieved shareholders of Supreme Industries, Inc. (STS) who may want to participate as a lead plaintiff in the pending securities class action lawsuit.
The shareholder complaint alleges that Supreme Industries (STS) falsely or misleadingly represented, and/or failed to disclose, backlog figures. Specifically, STS allegedly falsely or misleadingly stated that the 2015 third quarter backlog figure stemmed from the timing of large orders placed during the third quarter of 2015, and so the third quarter backlog figure for 2016 would not closely resemble 3Q 2015. Because of this, Supreme Industries’ statements with respect to its business, its operations, and its prospects were allegedly false or misleading. As it happened, the third quarter 2016 backlog represented a 22% decline from the third quarter in 2015. On October 21, 2016, Cliffside Research gave STS a “Strong Sell” rating, stating that the “[h]eavy insider trading in [Supreme Industries] is a canary in the coal mine that should not be ignored.”
According to the company’s website, Supreme Industries “is a comprehensive specialty contractor whose primary goal is to provide industry expertise to complex right-of-way clearing, access road and site preparation projects, with a commitment to deliver quality results on schedule and on budget.” The company focuses on road building, land clearing, erosion control and site development. It was founded in 1982 and is headquartered in Harwinton, Connecticut.