Investor Alert: Kaplan Fox Announces Investigation Of ADT Inc.

NEW YORK, June 6, 2018 /PRNewswire/ -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating claims on behalf of investors of ADT Inc. ("ADT" or the "Company") (NYSE: ADT).  ADT provides security systems and services.

A class action complaint has been filed in the United States District Court, Southern District of Florida on behalf of a class consisting of investors who purchased or otherwise acquired ADT common stock pursuant or traceable to the registration statement and prospectus (collectively, the "Registration Statement") issued in connection with ADT's January 2018 initial public offering (the "IPO").  On or about January 18, 2018, 105,000,000 shares of ADT common stock, not including the underwriters' over-allotment option, were sold in ADT's IPO at $14 per share for gross proceeds of approximately $1.47 billion.

According to the complaint, the Registration Statement provided "preliminary estimated ranges" of ADT's fiscal year 2017 financial results, including a range for fiscal year 2017 net income of $86,832,000 to a high end of $550,832,000.  With respect to these estimates the complaint alleges the Registration Statement stated "[w]e have presented preliminary estimated ranges of certain of our financial results [] for the year ended December 31, 2017, based on information currently available to management."

On March 15, 2018, in the first earnings report following the IPO, ADT disclosed disappointing financial results for the fiscal fourth quarter and fiscal year 2017 ended December 31, 2017.  Specifically, ADT reported "net income [for the fiscal fourth quarter] of $638 million, up from negative $85 million last year, and diluted earnings per share of $0.99 versus $(0.13) in the prior year."  However, the fourth quarter net income results included a $690 million tax benefit due to the 2017 Tax Reform.  "Excluding special items, diluted earnings per share was $(0.06)," a result much lower than analysts' estimates.

On March 15, 2018, the price of ADT's common stock fell $1.28 per share, or 12.5%, to close at $8.93 per share.

The complaint alleges, among other things, that the defendants failed to disclose material information in the Registration Statement filed pursuant to the IPO, including ADT's dependence on the Trump tax cut to meet even the extreme low end of its 2017 estimate ranges.

If you are a member of the proposed Class, you may move the court no later than July 20, 2018 to serve as a lead plaintiff for the purported class.  You need not seek to become a lead plaintiff in order to share in any possible recovery.  If you would like to discuss the complaint or our investigation, please contact us by emailing [email protected] or by calling 800-290-1952.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com.  If you have any questions about this Notice, the action, your rights, or your interests, please contact:

Donald R. Hall
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
(800) 290-1952
(212) 687-1980
Fax: (212) 687-7714
E-mail: [email protected]

Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
350 Sansome Street, Suite 400
San Francisco, California  94104
(415) 772-4700
Fax:  (415) 772-4707
E-mail: [email protected]

SOURCE Kaplan Fox & Kilsheimer LLP

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