| Company: | Texron Inc |
| Ticker Symbol: | TXT |
| Class Period: | Jul-17-07 to Jan-29-09 |
| Date Filed: | Aug-13-09 |
| Lead Plaintiff Deadline: | Oct-12-09 |
| Court: | District of Rhode Island |
| Allegations: | |
The complaint charges Textron and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Textron is a manufacturer of aircraft and industrial products, including such brands as Cessna Aircraft ("Cessna"), Bell Helicopter, and E-Z-GO golf carts, among others.
The complaint alleges that, during the Class Period, defendants made materially false and misleading statements concerning Textron's stability and profitability by repeatedly publicizing record "backlogs" of unfilled customer orders for aircraft generated primarily by Cessna and by making positive statements about the Company's finance segment. As alleged in the complaint, these statements were materially false and misleading because defendants misrepresented and/or failed to disclose the following adverse facts, among others: (i) that Textron was accepting orders for business jets from a growing number of customers that were mere startup and/or financially distressed fleet operators who neither intended nor possessed the financial resources to pay for or take delivery of aircraft during 2008-09 and beyond, which materially inflated Textron's "backlog" of unfilled orders for the Company's Cessna segment, which in turn materially overstated the Company's current financial condition and future prospects; (ii) that hundreds of orders reported as "backlog" at Cessna for future business-jet production were subject to deferral and cancellation causing the Company to overstate its projected fiscal 2008-09 business-jet production and to initiate costly production cutbacks and worker reduction programs, which eroded Textron's revenues and earnings; (iii) that the Company's Finance segment had incurred material losses in the fair market value of its finance receivables and other financial assets, and these unrealized market losses were omitted from or misrepresented in the Company's periodic reports of earnings and income; and (iv) that Textron's credit ratings were deteriorating in light of its Finance segment's losses and the additional debt the Company would incur in connection with its Finance segment's distressed asset base.
On January 29, 2009, the last day of the Class Period, Textron announced that an estimated $30 million of the $65 million in "restructuring" costs would be incurred by the Company's Cessna segment due to production cutbacks and worker layoffs planned for the first quarter of 2009. After this announcement, Textron common stock traded to a new low of $8.83 per share before closing at $9.05 per share on volume of more than 26 million shares, a one day decline of $4.19, or 31%.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
