Stockholders v Anixter International Inc.
Stockholders File Lawsuit Against Anixter International Inc.
According to a press release dated September 11, 2009, the complaint alleges that, throughout the Class Period, defendants made numerous positive statements regarding the Company's financial condition, business and prospects. The complaint further alleges that these statements were materially false and misleading because defendants failed to disclose the following adverse facts, among others: (i) that the Company was in a pricing dispute with one of its Original Equipment Manufacturer (OEM) customers, which would cost the Company approximately $3 million; (ii) that the Company was experiencing a decrease in sales in the European and Asian markets due to decreased demand for the Companys products; (iii) that the Company was experiencing operating margin pressure due to slower sales in its OEM supply business, which traditionally produce higher operating margins; and (iv) as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company and its prospects.
On October 21, 2008, Anixter announced its financial results for the third quarter of 2008, the period ending September 26, 2008. For the quarter, the Company reported sales of $1.59 billion and net income of $61.7 million, or $1.58 per diluted share. In response to this announcement, the price of Anixter common stock fell $18.76 per share, or approximately 40%, over the next five trading days, to close at $29.06 per share, on October 27, 2008, on heavy trading volume.
If you bought Anixter International Inc. securities and would like to obtain information about the Anixter International Inc. lawsuit, then you are invited to call Kahn Swick & Foti, LLC toll free at (866) 467-1400 extension 100 to speak with an attorney or visit www.ksfcounsel.com.
