AngioDynamics – Securities Investigation

Jul 19, 2017 | Securities Class Action Archive

Kehoe Law Firm’s securities attorneys are investigating potential claims on behalf of investors of AngioDynamics, Inc. (NASDAQ: ANGO) regarding possible securities law violations.

AngioDynamics – News of ‘Material Weakness’ Causes Share Price to Fall 7.5%

After the close of trading on July 17, 2017, AngioDynamics, Inc. announced that its auditor found a material weakness in its internal control over financial reporting as of May 31, 2016, because it did not design and maintain effective internal controls over the accounting for the annual goodwill impairment test.

Specifically, AngioDynamics did not have effective controls to review in sufficient detail the cash flow projections and valuation model assumptions used in the goodwill impairment test as of December 31, 2015.

Following this news, on July 18, 2017 AngioDynamic’s share price fell by 7.5% in intraday trading, causing significant harm to investors.

SeekingAlpha Reports: “AngioDynamics discloses material weakness in accounting of annual goodwill impairment”

The above-titled SeekingAlpha article, published on July 18, 2017, disclosed the following:

AngioDynamics . . . reports that its auditor has determined that there was a material weakness in its internal control over financial reporting as of May 31, 2016 because it did not design and maintain effective internal controls over the accounting for the annual goodwill impairment test.

Specifically, it did not have effective controls to review in sufficient detail the cash flow projections and significant valuation model assumptions used in the goodwill impairment test as of December 31, 2015.

The material weakness did not result in a misstatement of the 2016 financial statements or any interim periods therein. The company adds that the material weakness has been addressed.

AngioDynamics Files Form 8-K Regarding The Material Weakness

According to AngioDynamics’ Form 8-K, dated July 17, 2017:

AngioDynamics, Inc.’s (the “Company”) management has been informed by PricewaterhouseCoopers LLP (“PwC”), its former independent registered public accounting firm, following an inspection by the Public Company Accounting Oversight Board of PwC’s audit of the May 31, 2016 financial statements and internal controls over financial reporting, that the Company’s internal control over financial reporting as of May 31, 2016 was not effective because the material weakness described below existed as of that date.

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis.  PwC has now determined that there was a material weakness in the Company’s internal control over financial reporting as of May 31, 2016 because the Company did not design and maintain effective internal controls over the accounting for the annual goodwill impairment test.  Specifically, the Company did not design and maintain effective controls to review in sufficient detail the cash flow projections and significant valuation model assumptions used in the goodwill impairment test as of December 31, 2015. 

Management of the Company, after discussions with PwC and the Audit Committee, determined that Management’s Report on Internal Control over Financial Reporting included in the Company’s Annual Report on Form 10-K for the fiscal year ended May 31, 2016 should no longer be relied upon due to the material weakness specifically related to the goodwill impairment test noted above.

Have You Purchased or Acquired Shares of AngioDynamics?

If you purchased or acquired shares of AngioDynamics and would like to speak privately with a securities attorney to learn more about the investigation and your potential legal rights, please fill out the form to the right or contact John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected]; Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected]; or send an e-mail to [email protected].

About Kehoe Law Firm, P.C.

The Kehoe Law Firm, P.C. is a multidisciplinary, plaintiff–side law firm dedicated to protecting investors and consumers from corporate fraud, negligence, and other wrongdoing. Driven by a strong and principled sense of social responsibility and obtaining justice for the aggrieved, Kehoe Law Firm, P.C. represents plaintiffs seeking to recover investment losses resulting from securities fraud, breaches of fiduciary duty, corporate wrongdoing or malfeasance, those harmed by anticompetitive practices, and consumers victimized by fraud, false claims, deception or data breaches.  Together, the partners of the Kehoe Law Firm, P.C. have spent more than 30 years prosecuting precedent-setting securities and financial fraud cases in federal and state courts on behalf of institutional and individual clients.

 

Strom & ATI Replacement Worker Class Action

Jul 19, 2017 | Overtime & Wages

Class & Collective Action Lawsuit Filed

Allegheny Technologies, Inc., & Strom Engineering Corporation

Kehoe Law Firm, P.C. and co-counsel have filed a class and collective action lawsuit against Allegheny Technologies, Inc. (“ATI”) and Strom Engineering Corporation (“STROM”) on behalf of replacement workers who worked for these companies between August 2015 and March 2016.

The complaint claims that Strom and ATI violated the Fair Labor Standards Act (“FLSA”) by not paying its employees for their time spent being transported to and across picket lines in front of ATI facilities.

To review a copy of the ATI and Strom Complaint, filed on July 10, 2017, please click here: Filed Complaint ATI and Strom 7.10.17

Lockout Of Approximately 2,200 Employees

ATI, a publicly-traded corporation, manufactures and supplies specialty metals-including steel and other types of materials-for its customers worldwide. On August 15, 2015, ATI instituted a lockout of approximately 2,200 employees, all of whom are covered by various collective bargaining agreements (“CBAs”) with the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO, CLC (“USW”).

ATI & USW Contract Dispute & Strom’s Temporary Workforce

The lockout occurred due to a contract dispute between ATI and USW. In response to the lockout, the USW mobilized its members to protest ATI’s decision. These protests included picket lines and rallying at plant gates.

Regarding the lockout, ATI contracted with Strom, a privately-held corporation that provides strike and replacement labor for unionized employers throughout the United States, to provide a non-unionized temporary workforce to work at the ATI plants.

ATI and Strom scheduled these replacement workers to work 84 hour workweeks, 12 hours per day, 7 days per week. The replacement workers were required to travel to ATI facilities in vans that were owned, leased, or rented by Strom and driven by the replacement workers. The time spent driving or traveling to and across picket lines to enter the ATI facilities was unpaid.

Plaintiffs allege that the required travel is compensable work time, because it was an integral and indispensable part of their principal work activities.

Replacement Workers

Replacement workers are individuals hired to fill the roles of company employees who are unable to work due to a strike or lockout. They are sent from workplace to workplace by strike replacement companies such as Strom.

Replacement workers are often limited in their ability to organize and advocate for their rights because of the temporary and transient nature of replacement work.

Instead, without job security, the ability to organize, or access to labor protections that are traditionally associated with permanent positions, replacement workers are placed at the mercy of strike staffing agencies and companies whose priorities center on ensuring continuity of their own operations, frequently at the expense of the work conditions and basic rights of the replacement workers.

In addition, replacement workers, who are typically hired from outside the community where a lockout or strike occurs and who need hourly work to support themselves and their families, are often pitted against the union employees they are replacing.

If you are a replacement worker who was employed by Strom and ATI between August 2015 and March 2016 and did not receive payment for your travel time in Strom-operated vans, please contact Kehoe Law Firm, P.C., Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], or send an e-mail to [email protected], to discuss your circumstances, including whether you are eligible to join the lawsuit.

Replacement Worker Lawsuit News

Two news stories regarding the lawsuit can be accessed at:

https://www.bna.com/pay-crossing-picket-n73014461561/

http://triblive.com/local/valleynewsdispatch/12494796-74/ati-replacement-workers-sue-steel-maker-over-commuting-time-during-lockout

Kehoe Law Firm, P.C.

The Kehoe Law Firm, P.C. is a multidisciplinary, plaintiff–side law firm dedicated to protecting investors and consumers from corporate fraud, negligence, and other wrongdoing. Driven by a strong and principled sense of social responsibility and obtaining justice for the aggrieved, Kehoe Law Firm, P.C. represents plaintiffs seeking to recover investment losses resulting from securities fraud, breaches of fiduciary duty, corporate wrongdoing or malfeasance, those harmed by anticompetitive practices, and consumers victimized by fraud, negligence, false claims, deception, data breaches or whose rights to minimum wage and overtime compensation under the federal Fair Labor Standards Act and state wage and hour laws have been violated.