Revlon investors are concerned that some of the company’s leadership has engaged in securities fraud—and have enlisted the law firm Pomerantz LLP to investigate the claims on their behalf.
Per a release from Pomerantz LLP:
“On March 5, 2019, citing a review of Nielsen data, a Jefferies analyst noted that Revlon’s recent sales declines appeared to be worse than those of its rivals. Following this news, Revlon’s stock price fell $5.38 per share, or 21.04%, to close at $20.19 per share on March 5, 2019. Then on March 18, 2019, Revlon announced it would be unable to timely file its Annual Report for the fiscal year ending December 31, 2018. Revlon stated that the ‘principal reason for the delay is the recent identification of a material weakness’ related to the implementation of an enterprise resource planning system.
Following this news, Revlon’s stock price fell $1.33 per share, or 6.87%, to close at $18.02 per share on March 19, 2019.
Then, on March 28, 2019, post-market, Revlon filed its annual report for 2018. The annual report revealed further details about the company's problems relating to its ERP system, stating, in part that the ‘ERP-related disruptions caused the company to incur expedited shipping fees and other unanticipated expenses in connection with actions that the company implemented to remediate the decline in customer service levels’ and that ‘[t]he company estimates that this ERP launch resulted in the company being unable to fulfill product shipments representing approximately $64 million of net sales during 2018 and incurring $53.6 million of incremental charges in 2018, mainly related to actions that the company implemented to remediate the decline in customer service levels.’
On this news, Revlon’s stock price fell $1.33 per share, or roughly 6.4%, to close at $19.38 per share on March 29, 2019.”
Investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 9980.
