SOURCE: Brower Piven, A Professional Corporation

August 20, 2009 14:08 ET

Brower Piven Encourages Investors Who Have Losses in Excess of $200,000 From Investment in Textron, Inc. to Inquire About the Lead Plaintiff Position in Securities Fraud Class Action Lawsuit Before the October 13, 2009 Lead Plaintiff Deadline

BALTIMORE, MD--(Marketwire - August 20, 2009) - Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the United States District Court for the District of Rhode Island on behalf of purchasers of the securities of Textron, Inc. ("Textron" or the "Company") (NYSE: TXT) during the period between July 17, 2007 and January 29, 2009, inclusive (the "Class Period").

No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than October 13, 2009 and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You may contact Brower Piven (through hoffman@browerpiven.com or 410/986-0036) to answer any questions you may have in that regard.

The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the Company's failure to disclose during the Class Period 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 financial condition and future prospects, including 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; 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 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. According to the complaint, after the Company disclosed, on January 29, 2009, that an estimated $30 million of $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, the value of Textron's stock declined significantly.

If you have suffered a net loss for all transactions in Textron, Inc. securities during the Class Period (including shares or possibly calls purchased during, but not sold until after the end of the Class Period or possibly put options sold but not covered until after the end of the Class Period), you may obtain additional information about this lawsuit and your ability to become a lead plaintiff by contacting Brower Piven at www.browerpiven.com, by email at hoffman@browerpiven.com, by calling 410-986-0036, or at Brower Piven, A Professional Corporation, The World Trade Center-Baltimore, 401 East Pratt Street, Suite 2525, Baltimore, Maryland 21202. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 40 years. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.

Contact Information

  • CONTACT:
    Charles J. Piven
    Brower Piven, A Professional Corporation
    Baltimore, Maryland
    410/986-0036
    Email Contact