NEW YORK, Nov. 07, 2016 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Supreme Industries, Inc. (“Supreme” or the “Company”) (NYSE:STS) of the January 3, 2017 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.

The lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of all those who purchased Supreme stock or options between July 22, 2016 and October 21, 2016 (the “Class Period”). The case, Leibs v. Supreme Industries, Inc. et al, No. 2:16-cv-08230 was filed on November 4, 2016.

The lawsuit focuses on whether the Company and its executives violated federal securities laws by misrepresenting the fact that the order backlog figure for the third quarter of 2016 in its earning projections would look like the order backlog figure from the third quarter of 2015.

On July 22, 2016, the Company held a conference call to discuss the earnings of the second quarter of 2016. On the call, Matthew W. Long, Supreme’s Chief Financial Officer, discussed earning projections for the third quarter of 2016, stating in part that “the backlog is going to settle more towards the way it looked Q3 last year.”

However, on October 21, 2016, Supreme filed a Form 8-K with the Securities Exchange Commission reporting on the earnings of the third quarter of 2016 and revealing that at the end of the third quarter of 2016, order backlog was $58.1 million, which was down from the $74.4 million in order backlog at the end of last year’s same quarter. The Company has cited the fact that timing of several large orders increased the backlog at the end of the third quarter 2015 as the reason for the discrepancy.

After the filing, Supreme’s share price fell from $17.96 per share on October 20, 2016 to a closing price of $ 13.68 on October 21, 2016—a $4.28 or a 23.8% drop.

Later that day, Cliffside Research published the report “The Party is Over For Supreme Industries, Inc.,” which discussed the significance of the huge percentage drop in backlog and insiders’ knowledge of Supreme’s struggling business by selling a substantial percentage of their Company stock.

After the publication of the report, Supreme’s share price fell from $13.68 per share on October 21, 2016 to a closing price of $11.30 on October 24, 2016—a $2.38 or a 17.4% drop.

Request more information now by clicking here: www.faruqilaw.com/STS. There is no cost or obligation to you.

Take Action

If you invested in Supreme stock or options between July 22, 2016 and October 21, 2016 and would like to discuss your legal rights, visit www.faruqilaw.com/STS. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding Supreme’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class that is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff. 

Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.

FARUQI & FARUQI, LLP
685 Third Avenue, 26th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
rgonnello@faruqilaw.com
Telephone: (877) 247-4292 or (212) 983-9330

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.