Another lawsuit against Caterpillar, just days after federal investigators raid 3 local facilities.
Glancy, Prongay & Murray, a law firm out of Los Angeles, is announcing this class action lawsuit Monday on behalf of investors who purchased Caterpillar stock.
Investors who suffered losses on their Caterpillar investments are being asked to contact the firm to file a lead plaintiff motion. The firm says this applies to investors who bought stock between February 2013 and March 2017. Investors who purchased the stock during the given period have until May 2nd to file the motion.
The suit mentions that on the day of the federal raid, shares fell by over 4.5% or over $4.50 per share.
The lawsuit alleges that Caterpillar made false and misleading statements or failed to disclose that Caterpillar unlawfully used foreign subsidiaries to avoid paying billions of dollars in US taxes. It goes on to say that discovery of such conduct would subject Caterpillar to heightened regulatory scrutiny and potential criminal sanctions and as a result, Caterpillar’s public statements were materially false and misleading.
This class action lawsuit comes after one of Caterpillar shareholders announces he’s also taking the company to court. Jacob Newman is suing Caterpillar and 3 top executives.
He also claims the company made false and misleading statements and engaged in unlawful acts. It’s all in relation to CSARL, a parts subsidiary in Switzerland. Newman claims this has caused him “significant losses.”