Vertiv Holdings Co

  • Active

Investigation
02/23/2022

Initial Lawsuit
03/24/2022

Lawsuit Progression
06/22/2022

Investigation

  • Continous Holding
    April 28, 2021 to February 23, 2022
  • Proposed Claim
    Securities Violation

Did Vertiv Holdings Co mislead investors with its management’s consistent underestimation of inflation and supply chain constraints?

This post is open for investors to gather facts, and findings and track their exposure to related lawsuits. We invite investors and shareholders to contribute to this investigation for their own benefit, add events to the factual timeline below and vote on events’ pertinence.

A lawsuit was subsequently filed. We will update this post as it unfolds.

Main Event

Underestimation

02/23/2022

SEC Filing

Vertiv reports its Q4 2021 financial results, impacted by “Inflationary and Supply Chain Pressures” along with “significant pricing actions” implemented at end of 2021 and early 2022.

“We consistently underestimated inflation and supply chain constraints for both timing and degree, which dictated a tepid 2021 pricing response. We learned a hard lesson from our slow response in 2021, and we acted decisively late last year and early this year with aggressive price actions. We expect that the impact of these actions will progressively show in our 2022 profitability, with each quarter sequentially better than the previous quarter, and that our second half 2022 results will be strong – setting the stage for consistently improving profitability going forward.” Rob Johnson, Vertiv’s Chief Executive Officer.

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
$12.38 $19.57 $-7.19 -36.74%
See more on Factual Timeline

Initial Lawsuit

A Vertiv Holdings Co shareholder filed a securities class action on behalf of persons and entities that: (a) purchased shares of Vertiv’s class A common stock between February 24, 2021, and February 23, 2022, inclusive; and/or (b) purchased Vertiv shares in or traceable to the company’s secondary public offering of class A common stock conducted on or around November 4, 2021 (SPO).

  • Filing Date
    05/03/2022
  • Class Period
    02/24/2021 to 02/23/2022
  • Transgression
    Securities Violation
  • Filing Firms
    Bernstein Litowitz Berger & Grossman LLP
  • Case Title
    City of Riviera Beach General Employees' Retirement System v. Vertiv Holdings Co
  • Docket Number
    1:22-cv-03572
  • Court
    New York Southern District Court
  • 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) Vertiv’s “pricing initiatives” were ineffective and the company’s sales force was not capable of driving higher pricing and passing costs on to customers;
(ii) Instead, the sales team had resorted to discounting in order to drive
sales and build the company’s backlog, which resulted in lower margins and profitability.

Defendants

  • Company
    Vertiv Holdings Co
  • Chief Executive Officer
    Rob Johnson
  • Chief Financial Officer
    David Fallon
  • Chief (Other)
    Jason Forcier
  • Chief Strategic Officer
    Gary Niederpruem
  • Executive Chairman
    David Cote
  • Director
    Joseph van Dokkum
  • Director
    Roger Fradin
  • Director
    Jacob Kotzubei
  • Director
    Matthew Louie
  • Director
    Edward L. Monser
  • Director
    Steven S. Reinemund
  • Director
    Robin L. Washington
  • Owner
    VPE Holdings, LLC
  • Owner
    JV Holdings
  • Owner
    PE Holdings
  • Owner
    Platinum Equity, LLC
  • Chairman
    Tom Gores
  • Underwriter
    J.P. Morgan Securities LLC

  • See Complaint for Additional Defendants . . .
  • Underwriter
    Citigroup Global Markets Inc.

Lawsuit progression

  • Docket Number
    1:22-cv-3572
  • Court
    New York Southern District Court

Lead Counsel

06/22/2022

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

  • Lead Counsel
    Bernstein Litowitz Berger & Grossman LLP
    Saxena White P.A.
  • Lead Plaintiff
    Group of Funds
  • Free File
    Order for lead
[stockdio-historical-chart symbol=”VRT” stockExchange=”NYSENasdaq” width=”500″ height=”330″ motif=”blinds” palette=”humanity” includeVolume=false]

Factual Timeline

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