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Flex Stock Drops More Than 21% - Flex Securities Investigation

Flex Stock Drops More Than 21% – Flex Securities Investigation

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Kehoe Law Firm, P.C. is conducting a securities investigation on behalf of investors and shareholders of Flex Ltd. (NASDAQGS: FLEX) to determine whether Flex and certain of its officers or directors engaged in securities fraud or other unlawful business practices. 

Flex Reports Q4 and Fiscal 2018 Results – Discloses Allegations of Improper Accounting of Obligations in a Customer Contract and Certain Related Reserves

On April 26, 2018, Flex, “the Sketch-to-Scale™ solutions provider that designs and builds Intelligent Products for a Connected World™,” issued a press release which disclosed that

. . . the Audit Committee of the Company’s Board of Directors, with the assistance of independent outside counsel, is undertaking an independent investigation of allegations made by an employee including that [Flex] improperly accounted for obligations in a customer contract and certain related reserves. The independent outside counsel also notified the San Francisco office of the Securities and Exchange Commission of the allegations and that it will report the findings of the independent investigation upon its conclusion.

Flex Stock Drops Over 21% On the News of the Accounting Allegations

On the news of the accounting allegations, the stock of Flex dropped more than $3.61 per share, or greater than 21.6%, to close at $13.03 per share on April 27, 2018. 

Flex Stock Drops More Than 21% on News of Improper Accounting Allegations - Kehoe Law Firm Conducting Securities Investigation

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Flex Stock Drops Over 21% On the News of the Accounting Allegations

On the news of the accounting allegations, the stock of Flex dropped more than $3.61 per share, or more than 21.6%, to close at $13.03 per share on April 27, 2018.

Securities Class Action Lawsuit Filed Against Flex

On May 8, 2018, a class action lawsuit was filed against Flex Ltd. and the Company’s CEO and CFO in United States District Court, Northern District of California, for alleged violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

Investors Who Purchased, Or Otherwise Acquired, Flex Ordinary Shares Between January 26, 2017 and April 26, 2018, Inclusive (the “Class Period”), Are Encouraged to Contact Kehoe Law Firm, P.C. To Discuss Their Potential Legal Claims and Options. Investors Who Purchased Flex Securities Have Until July 7, 2018 To Seek Appointment As Lead Plaintiff. 

According to the class action complaint, throughout the Class Period, the Flex Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the business, operations, and prospects of Flex. Specifically, the Flex Defendants failed to disclose: (i) that the Company’s internal controls over financial reporting were materially weak and deficient; (ii) that Flex had improperly accounted for obligations in a customer contract and certain related reserves; and (iii) as a result of the foregoing, the financial statements of Flex and the Flex Defendants about the Company’s business, operations, and prospects were materially false and misleading at all relevant times.

The complaint also alleges that as a result of the Flex Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the securities of Flex, Class members have suffered significant losses and damages.

Flex Shareholders and Investors

If you purchased, or otherwise acquired, Flex securities and have questions or concerns about the securities investigation or your potential legal rights, please contact John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], complete the form above on the right or e-mail [email protected].

Investors who purchased Flex securities during the Class Period and suffered damages have until July 7, 2018 to file a motion with the Court to seek appointment as lead plaintiff. Please note that no class has been certified in the above action, and until a class is certified, you are not represented by counsel unless you retain an attorney of your choice. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may serve together as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.

Kehoe Law Firm, P.C.