California-based Lundin Law PC has filed a class action lawsuit against Lexmark International for misleading investors with false statements.
The shareholder-rights legal firm alleged that Lexmark made investors believe that its supplies growth was driven by end-user demand. However, the growth was, in fact, due to pricing increases. As a reaction to the anticipated pricing increase, European customers purchased supplies ahead which resulted the excessive inventory.
According to wirthconsulting.org, the shareholder-rights legal firm alleged that Lexmark possibly violated federal-securities laws between August 1, 2014 and July 20, 2015.
It is said that no class has been certified for the lawsuit yet.
Another law firm, Labaton Sucharow, also filed a securities class action lawsuit against Lexmark on behalf of its client the Oklahoma Firefighters Pension and Retirement System.