SOURCE: Stull, Stull & Brody

August 14, 2009 14:19 ET

Stull, Stull & Brody Announces Class Action on Behalf of Shareholders of Textron Inc.

NEW YORK, NY--(Marketwire - August 14, 2009) - Attorney Advertising. Notice is hereby given that a class action has been commenced 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 during the period July 17, 2007 through January 29, 2009 (the "Class Period").

Stull, Stull & Brody has substantial experience representing employees who suffered losses from purchases of their employer's stock in their 401(k) plans. If you purchased Textron stock through your Textron retirement account and have information or would like to learn more about these claims, please contact us.

The complaint charges Textron and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Textron is a manufacturer of aircraft and industrial products. The complaint alleges that during the Class Period defendants issued materially false and misleading statements regarding the Company's condition and profitability by repeatedly publicizing record "backlogs" of unfilled customer orders for its Cessna Aircraft brand products, and by making positive statements about the Company's Finance segment. The complaint alleges that those statements were materially false and misleading because defendants misrepresented and/or failed to disclose the following adverse facts, among others: (i) 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 - 2009 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 current financial condition and future prospects; (ii) that hundreds of orders for future business-jet production reported as "backlog" at Cessna were subject to deferral and cancellation, causing the Company to overstate its projected fiscal 2008 - 2009 business-jet production and to initiate costly production cutbacks and worker reduction programs which eroded Textron's revenues and earnings; (iii) 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 (iv) 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.

As alleged in the complaint, the Company's stock price declined after the Company announced at the end of the Class Period that an estimated $30 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. Upon this announcement, the price of Textron's common stock fell to $8.83 per share, to close at $9.05 per share, representing a one-day decline of $4.19 per share or 31%.

Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased Textron securities between July 17, 2007 and January 29, 2009, excluding defendants and their affiliates.

If you purchased Textron securities between July 17, 2007 through January 29, 2009, you may, not later than October 12, 2009, request that the Court appoint you as lead plaintiff for the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation, and you must meet certain legal requirements to serve as a lead plaintiff.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Tzivia Brody, Esq. at Stull, Stull & Brody by e-mail at SSBNY@aol.com, by calling toll-free 1-800-337-4983, or by fax to 1-212-490-2022, or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017. You can also visit our website at www.ssbny.com.

Attorney Advertising. Prior Results Do Not Guarantee A Similar Outcome.

Contact Information

  • Contact:
    Tzivia Brody, Esq.
    Stull, Stull & Brody
    SSBNY@aol.com
    toll-free 1-800-337-4983
    fax 212/490-2022
    Stull, Stull & Brody
    6 East 45th Street
    New York, NY 10017