SOURCE: Izard Nobel LLP

August 19, 2009 13:15 ET

Izard Nobel LLP Announces Class Action Lawsuit Against Textron, Inc.

WEST HARTFORD, CT--(Marketwire - August 19, 2009) - The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the District of Rhode Island on behalf of those who purchased the securities of Textron, Inc. ("Textron" or the "Company") (NYSE: TXT) between July 17, 2007 and January 29, 2009, inclusive (the "Class Period").

The Complaint charges that Textron and certain of its officers and directors violated federal securities laws. Specifically, the Complaint alleges that defendants failed to disclose the following materially adverse facts: (i) 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 Aircraft ("Cessna") segment, which in turn materially overstated Textron'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 production cutbacks and worker reduction programs, which eroded Textron's revenues and earnings; (iii) Textron's Finance segment had incurred material losses in the fair market value of its finance receivables and other financial assets, which were omitted from or misrepresented in the Company's periodic reports of earnings and income; and (iv) in light of its Finance segment's losses and the additional debt the Company would incur, Textron's credit ratings were deteriorating.

On January 29, 2009, Textron announced that an estimated $30 million in "restructuring" costs would be incurred by Textron's Cessna segment due to production cutbacks and worker layoffs planned for the first quarter of 2009. On this news, Textron's common stock fell to a close of $9.09 per share, or 31%.

If you are a member of the class, you may, no later than October 13, 2009, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.

While Izard Nobel LLP has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, and your rights, visit: www.izardnobel.com/textron/, or contact Izard Nobel LLP toll-free: (800) 797-5499, or by e-mail: firm@izardnobel.com. For more information about class action cases in general, please visit our website: www.izardnobel.com.

Contact Information