SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of CaesarStone Sdot-Yam Ltd. – CSTE
NEW YORK, NY / CRWEPRESSRELEASE / August 20, 2015 / Pomerantz LLP is investigating claims on behalf of investors of CaesarStone Sdot-Yam Ltd. (“CaesarStone” or the “Company”) (NASDAQ: CSTE). Such investors are advised to contact Robert S. Willoughby at firstname.lastname@example.org or 888-476-6529, ext. 9980.
The investigation concerns whether CaesarStone and certain of its officers and/or directors have violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
On August 19, 2015, analyst firm Spruce Point Capital Management published a report on CaesarStone asserting that: (1) a FOIA request to the SEC revealed that the cost of quartz rose substantially by ~20% in 2014, yet CaesarStone stated in its SEC filings the impact was just 4%; (2) independent lab tests show CaesarStone’s samples may contain less quartz than advertised; (3) CaesarStone’s reported consolidated margins may be overstated; (4) U.S. import shipping data indicates that CaesarStone’s North American market share may not be growing as claimed; (5) CaesarStone’s gross margins and EBITDA margins appear overstated; (6) CaesarStone is party to a growing number of lawsuits (at least 14 since 2008) for approximately 60 silicosis-related injuries or deaths suffered by workers and fabricators of its product in Israel; (7) recent OSHA warnings regarding silicosis may delay the opening of a new U.S. facility and increase its costs; and (8) CaesarStone’s recent inspection reports revealed audit deficiencies related to revenue and inventory controls.
On this news, CaesarStone ADRs fell $3.68, or 7.6% to close at $44.61 on August 19, 2015.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Florida, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.