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Waters Corp. may have misrepresented to investors its financial condition and business prospects.
Investigation Source (Case #08-cv-11889)
- Nationwide
Investigation Scope
Category Information
Investigation Topics
- Investments
- False And Misleading Statements
- Lead Plaintiff Not Chosen
Product or Service
- Investments
Injury Type
- Monetary Loss
Investigation Details
This is a securities fraud class action against Waters Corp. and certain officers and directors.
Waters Corp. provides high-performance liquid chromatography products and services. Waters distributes its products worldwide to a wide range of industries, such as pharmaceuticals, chemicals, and environmental testing.
The class action complaint alleges that the representations contained in Water Corp.'s press releases, SEC filings, conference calls, and presentations during the Class Period were materially false and misleading when made because they failed to disclose:
(i) that Waters was experiencing a slowdown in sales in the Japanese market as a result of decreased government regulation, which reduced the need for Waters' products and services;
(ii) that Waters' earnings were being materially impacted by an increased tax rate; and
(iii) as a result of the foregoing, Waters had no reasonable basis for its 2007 earnings guidance.
According to the complaint, on January 22, 2008, Waters Corp. announced its financial results for the fourth quarter and year-end 2007, the period ended December 31, 2007. Following this press release, the Waters held a conference call with analysts and investors and revealed that an unexpected increase in [its] annual tax rate, among other factors, adversely affected [its] bottom-line performance. Moreover, Waters stated that its Japanese sales were weaker than anticipated due to a change in the testing protocols for drinking water analysis in Japan, which Waters knew about since last year.
Upon this news, shares of Waters' stock fell $14.65 per share, or approximately 20%, to close at $58.58 per share, on heavy trading volume.
Waters Corp. provides high-performance liquid chromatography products and services. Waters distributes its products worldwide to a wide range of industries, such as pharmaceuticals, chemicals, and environmental testing.
The class action complaint alleges that the representations contained in Water Corp.'s press releases, SEC filings, conference calls, and presentations during the Class Period were materially false and misleading when made because they failed to disclose:
(i) that Waters was experiencing a slowdown in sales in the Japanese market as a result of decreased government regulation, which reduced the need for Waters' products and services;
(ii) that Waters' earnings were being materially impacted by an increased tax rate; and
(iii) as a result of the foregoing, Waters had no reasonable basis for its 2007 earnings guidance.
According to the complaint, on January 22, 2008, Waters Corp. announced its financial results for the fourth quarter and year-end 2007, the period ended December 31, 2007. Following this press release, the Waters held a conference call with analysts and investors and revealed that an unexpected increase in [its] annual tax rate, among other factors, adversely affected [its] bottom-line performance. Moreover, Waters stated that its Japanese sales were weaker than anticipated due to a change in the testing protocols for drinking water analysis in Japan, which Waters knew about since last year.
Upon this news, shares of Waters' stock fell $14.65 per share, or approximately 20%, to close at $58.58 per share, on heavy trading volume.
Defendant Details
| Name (Stock Symbol) | Brief Description |
|---|---|
| Waters Corporation (WAT) | Waters Corporation operates as an analytical instrument manufacturer primarily in the United States, Europe, Japan, and Asia. |