NEW YORK, NY -- (Marketwired) -- 09/25/15 -- Pomerantz LLP announces that a class action lawsuit has been filed against CaesarStone Sdot-Yam Ltd. ("Caesarstone" or the "Company") (NASDAQ: CSTE) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, and docketed under 15-cv-06726, is on behalf of a class consisting of all persons or entities who purchased CaesarStone securities between March 25, 2013 and August 18, 2015 inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased CaesarStone securities during the Class Period, you have until October 26, 2015 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at email@example.com or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
CaesarStone manufactures and sells engineered quartz surfaces under the CaesarStone brand in the United States, Australia, Canada, Israel, Europe, and internationally. The Company's products are engineered quartz slabs, which are used as kitchen countertops in the renovation and remodeling, and residential construction end markets, as well as other applications, including vanity tops, wall panels, back splashes, floor tiles, stair, and other interior surfaces that are used in various residential and non-residential applications. It sells its products directly to fabricators, sub-distributors, and resellers; and indirectly through a network of independent distributors.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) that the cost of quartz rose substantially by approximately 20% in 2014 while the Company claimed in SEC filings the impact of the price increase was just 4%; (ii) independent lab tests demonstrate that CaesarStone's samples contained less quartz than advertised; (iii) CaesarStone's reported consolidated margins, gross margins, and EBITDA were overstated; (iv) the extent of and risk posed by a growing number of lawsuits for approximately 60 silicosis-related injuries or deaths suffered by workers and fabricators of its product in Israel was understated; vi) the impact recent OSHA warnings regarding silicosis would have on the opening of a new U.S. facility and associated costs; (vii) recent inspection reports revealed audit deficiencies related to revenue and inventory controls; and (viii) as a result of the foregoing, Defendants' statements about CaesarStone's business, operations, and prospects were false and misleading and/or lacked a reasonable basis at all relevant times.
On August 19, 2015, analyst firm Spruce Point Capital Management published a report on CaesarStone describing the aforementioned false and misleading statements and failures of disclosure. On this adverse 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, Florida, and Los Angeles, 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
Robert S. Willoughby