Dycom Industries, Inc.

  • Settled

Investigation
05/22/2018

Initial Lawsuit
10/25/2018

Lawsuit Progression
11/01/2019

Settlement
06/26/2020

Investigation

  • Continous Holding
    November 20, 2017 to August 10, 2018
  • Proposed Claim
    Securities Violation

Investors investigation regarding Dycom’s dependency on permitting and tactical considerations, related margin pressure and absorption issues, reduced guidance on contract revenues and diluted earnings per shares (diluted EPS).

Main Event

Q1 2018 - Margin Pressure

05/22/2018

SEC Filing

Dycom releases its Q1 2018 financial results, revising its financial guidance for the 2019 fiscal year to “reflect the actual results for the quarter ended April 28, 2018 and the anticipated timing of activity on large customer programs and the related impacts on revenues and margins.” During the related conference call Dycom’s chief financial officer (CFO) DeFerrari explained the “disappointing” margin pressure by “the under-absorption of labor and field costs as large customer programs mobilized.”

The stock impact compares the closing price immediately preceding the date of the event and the following closing price. The price difference also reflects the overall mix of information.

Stock Impact

Close Previous close Price variation Percentage variation
$92.64 $116.20 $-23.56 -20.27%
See more on Factual Timeline

Initial Lawsuit

First Complaint - 10/25/2018

This securities class action lawsuit is filed on behalf of “all investors who purchased or otherwise acquired Dycom common stock between November 20, 2017, and August 10, 2018, inclusive.”

  • Filing Date
    10/25/2018
  • Class Period
    11/20/2017 to 08/10/2018
  • Transgression
    Securities Violation
  • Filing Firms
    Levi & Korsinsky, LLP
  • Case Title
    Tung v. Dycom Industries, Inc.
  • Docket Number
    9:18-cv-81448
  • Court
    Southern District of Florida
  • Free File
    Complaint

Allegations

According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors that:

(i) Dycom’s large projects were highly dependent on permitting and tactical considerations;
(ii) Dycom was facing great uncertainties related to permitting issues;
(iii) said uncertainties would expose Dycom to near-term margin pressure and absorption issues; and
(iv) as a result of the foregoing, defendants’ statements about Dycom’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.

Defendants

  • Company
    Dycom Industries, Inc.
  • Chief Executive Officer
    Steven E. Nielsen
  • Chief Financial Officer
    Andrew DeFerrari

Lawsuit progression

  • Docket Number
    9:18-cv-81448
  • Court
    Southern District of Florida

Lead Counsel

11/01/2019

The court issued an order appointing the lead plaintiff and lead counsel.

  • Lead Counsel
    Labaton Sucharow LLP
    Levi & Korsinsky, LLP
    Thornton Law Firm LLP

Amended Complaint

03/13/2019

Lead Plaintiff brings this action against Dycom Industries, Inc., Chief Executive Officer Steven Nielsen, and Chief Financial Officer Andrew DeFerrari on behalf of itself and all other persons similarly situated who purchased or otherwise acquired Dycom common stock between November 20, 2017 and August 10, 2018, inclusive (the “Class Period”), and were damaged thereby.

  • Updated Class Period
    11/20/2017 to 08/10/2018
  • Free File
    Amended Complaint

    • Operative complaint

Motion to Dismiss

04/19/2019

A motion to dismiss was filed with the court.

04/14/2020

Court Denied the motion to dismiss.

Settlement

  • Proposed Settlement Filing Date
    06/26/2020
  • Preliminary approved settlement
    07/09/2020
  • Total Amout
    $9,500,000 in Cash
  • Approx. per Share
    $0.88
  • Fee Requested
    29%
  • Max. Expenses Requested
    $350,000
  • Claims Filing Deadline
    10/08/2020
  • Settlement Approval Date
    10/13/2020
  • Attorney Fees and Expenses Order Date
    10/13/2020
  • Hours Spent Litigating
    2,550 hours
  • Lodestar Value
    $1,863,660.25
  • Attorney Fees Percentage
    29%
  • Attorney Expenses
    $98,028.19

Announce

On 06/26/2020, lead counsel Labaton Sucharow LLP, Levi & Korsinsky, LLP, Thornton Law Firm LLP announced a proposed class action settlement.

Preliminary Approval

The court preliminarily approved the settlement on 07/09/2020. The settlement has a total value of $9,500,000 in Cash.

Am I included?

The notice states that you may be included, if you purchased or otherwise acquired the company’s publicly traded common stock during the period from 11/20/2017 to 08/10/2018, inclusive.

What is the estimated recovery?

According to the notice, the estimated average cash recovery per damaged share of common stock will be approximately $0.88 per share, before deduction of court-approved fees and expenses. Lead Counsel filed a motion for an award of attorneys’ fees not to exceed 29% of the $9,500,000 and payment of expenses not to exceed $350,000.

How can I file a claim?

For information purposes only, last updated on 07/23/2020. Contact the claims administrator or lead counsel for further information.

Source

Final Approval

The court approved the settlement on 10/13/2020.

Source

Attorney Fees & Expenses

On 10/13/2020, the court awarded lead counsel fees and reimbursement of expenses. The court acknowledged 2,550 hours, with a lodestar value of $1,863,660.25, spent by lead counsel to achieve the settlement. The court awarded attorney fees of 29% of the total value of settlement (or $2,755,000) plus litigation expenses of $98,028.19.

[stockdio-historical-chart symbol=”DY” stockExchange=”NYSENasdaq” width=”500″ height=”330″ motif=”blinds” palette=”humanity” includeVolume=false]

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