NEW YORK, Nov. 7, 2018 /CNW/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Dycom Industries, Inc. ("Dycom" or the "Company") (NYSE: DY) and certain of its officers. The class action, filed in United States District Court, Southern District of Florida, and indexed under 18-cv-81480, is on behalf of a class consisting of all persons and entities, other than Defendants and their affiliates, who purchased or otherwise, acquired Dycom common stock between November 20, 2017, and August 10, 2018, inclusive (the "Class Period"), seeking remedies under the Securities Exchange Act of 1934 (the "Exchange Act") , and SEC Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased Dycom securities between November 20, 2017, and August 10, 2018, both dates inclusive, you have until December 24, 2018, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] 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 the number of shares purchased.
Dycom provides specialty contracting services through subsidiaries throughout the United States and in Canada. Dycom's services include program management, engineering, construction, maintenance, and installation services for telecommunications providers, underground facility locating services for various utilities, including telecommunications providers, and other construction and maintenance services for electric and gas utilities.
Throughout the Class Period, Defendants made materially false and misleading statements regarding Dycom's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Dycom was highly dependent on permitting and tactical considerations for its large projects; (ii) Dycom's permitting for its large projects was uncertain; (iii) as a result, Dycom was exposed to near-term margin pressure and absorption issues; and (iv) as a result, Dycom's public statements were materially false and misleading at all relevant times.
On May 22, 2018, Dycom disclosed, among other things, that the Company was facing margin pressure caused by the under-absorption of labor and field costs as large customer programs mobilized. It was further disclosed that Dycom expected "margins to continue to be impacted in the near term with the pressure dissipating as we gain greater momentum on these large programs." Following these disclosures, Dycom lowered its outlook for the full fiscal year of 2018.
On this news, the price of Dycom's common stock declined $23.56 from a close on May 21, 2018, at $116.20 per share, to close at $92.64 per share on May 22, 2018, a decline of approximately 20.27%.
Then, on August 13, 2018, Dycom again announced disappointing results for the quarter ended July 28, 2018, and announced it would revise its financial guidance for the fiscal year 2019. Specifically, it was revealed that Dycom's "results were impacted by large-scale deployments that were slower than expected during the quarter, due to customer timing and tactical considerations and margins that were pressured from under-absorption of labor and field costs to the lower revenue level."
Following this news, Dycom's common stock price declined more than 24% to close at $68.09 per share on August 13, 2018.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
888-476-6529 ext. 9980
SOURCE Pomerantz LLP