SAN FRANCISCO, Aug. 16, 2016 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP alerts investors in Orbital ATK, Inc. (NYSE:OA) to the October 11, 2016 Lead Plaintiff deadline in the securities class action filed in the United States District Court for the Eastern District of Virginia.
If you purchased or otherwise acquired securities of Orbital ATK, Inc. between June 1, 2015 and August 9, 2016 and suffered over $50,000 in losses contact Hagens Berman Sobol Shapiro LLP. For more information visit:
https://www.hbsslaw.com/cases/OA
or contact Reed Kathrein, who is leading the firm’s investigation, by calling 510-725-3000 or emailing OA@hbsslaw.com.
On August 10, 2016, Orbital announced it would not timely file its Form 10-Q for its most recent quarter with the SEC.
The Company explained that investors should no longer rely on certain of the Company’s historical financial statements because of accounting irregularities that necessitate restatements of its financial statements. The irregularities primarily impact financial statements issued during the Company’s 2015 fiscal year, though an accounting investigation is ongoing.
Orbital’s misstatements relate to the improper application of Generally Accepted Accounting Principles to its $2.3 billion long-term contract with the U.S. Army. The Company estimates that it will restate financial statements to reduce pre-tax operating income by approximately $400 million to $450 million and reduce reported revenue by $100 million to $150 million. In addition, “[a]fter considering the misstatements…the Company believes that the Contract will result in a net loss over its 10-year term.”
In response to this news, the price of Orbital’s stock tumbled over 20% on August 10, 2016 to close at $70.79
“Among other items, we’re looking into why Orbital’s accounting irregularities seemingly went unchecked for so long,” said Hagens Berman partner Reed Kathrein.
Whistleblowers: Persons with non-public information regarding Orbital ATK, Inc. should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email OA@hbsslaw.com.
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