SOURCE: Shalov Stone Bonner & Rocco LLP

Shalov Stone Bonner & Rocco LLP

August 17, 2009 15:39 ET

Shalov Stone Bonner & Rocco LLP Announces Class Action Against Textron Inc.

NEW YORK, NY--(Marketwire - August 17, 2009) - Shalov Stone Bonner & Rocco LLP announces that a class action lawsuit was filed in the United States District Court for the District of Rhode Island on behalf of purchasers of Textron Inc. ("Textron" or the "Company") (NYSE: TXT) securities between July 17, 2007 and January 29, 2009 (the "Class Period").

The complaint alleges that, throughout the Class Period, defendants misrepresented or failed to disclose that: (1) Textron was accepting orders for business-jets from an increasing number of customers who were startups and/or financially distressed fleet operators who neither intended nor possessed the resources to pay for or take delivery of aircraft during 2008-09 and beyond. This materially inflated Textron's "backlog" of unfilled orders for its Cessna segment, which in turn materially overstated its current financial condition and future prospects; (2) hundreds of orders for future business-jet production reported as "backlog" at Cessna were subject to deferral and cancellation, causing Textron to overstate its projected fiscal 2008-09 business-jet production and to initiate production cutbacks and worker reduction programs, thereby eroding its revenues and earnings; (3) Textron's Finance segment incurred material losses in the fair market value of its finance receivables and other financial assets, which were omitted from or misrepresented in Textron's periodic reports of earnings and income; and (4) in light of Textron's 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 its Cessna segment would incur an estimated $30 million in "restructuring" costs due to production cutbacks and worker layoffs planned for the first quarter of 2009. On this news, the price of Textron's common stock fell 31%.

Shalov Stone Bonner & Rocco LLP has extensive experience in the prosecution of lawsuits on behalf of investors. For more information about the firm, please visit its website at:

If you purchased Textron securities and would like additional information about your rights, please contact investor rights attorney Amanda C. Scuder, at Shalov Stone Bonner & Rocco LLP, 485 Seventh Avenue, Suite 1000, New York, New York 10018 (telephone: (212) 239-4340; email:

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