Shareholder Class Action Filed Against CaesarStone Sdot-Yam Ltd. - CSTE

RADNOR, Pa., Sept. 9, 2015 /PRNewswire/ -- The law firm of Kessler Topaz Meltzer & Check, LLP announces that a shareholder class action lawsuit has been filed against CaesarStone Sdot-Yam Ltd. (Nasdaq: CSTE) ("CaesarStone" or the "Company") on behalf of purchasers of the Company's securities between March 25, 2013 and August 18, 2015, inclusive (the "Class Period").

CaesarStone shareholders who wish to discuss this action and their legal options are encouraged to contact Kessler Topaz Meltzer & Check, LLP (Darren J. Check, Esq., D. Seamus Kaskela, Esq. or Adrienne O. Bell, Esq.) at (888) 299-7706 or at [email protected]. 

For additional information about this lawsuit, or to request information about this action online, please visit http://www.ktmc.com/new-cases/caesarstone-sdot-yam-ltd.

CaesarStone manufactures and sells engineered quartz slabs, which are typically utilized as kitchen countertops, under the CaesarStone brand in the U.S. and internationally.

The complaint alleges that CaesarStone and certain of its executive officers made a series of false and/or misleading statements, and failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, the complaint alleges that the defendants made false and misleading statements and/or failed to disclose that: (i) that the cost of quartz rose 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; (v) the impact recent OSHA warnings regarding silicosis would have on the opening of a new U.S. facility and associated costs;  (vi) recent inspection reports revealed audit deficiencies related to revenue and inventory controls; and (vii) as a result of the foregoing,  the 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 an in-depth report on CaesarStone, which the complaint alleges summarized the aforementioned false and misleading statements and failures of controls and disclosure. Following this news, CaesarStone's securities significantly declined in value.

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 Kessler Topaz Meltzer & Check (Darren J. Check, Esq., D. Seamus Kaskela, Esq. or Adrienne O. Bell, Esq.) at (888) 299 – 7706 or (610) 667 – 7706, or via e-mail at [email protected]. 

CaesarStone shareholders who are members of the class may, no later than October 26, 2015, petition the Court to be appointed as a lead plaintiff of the class.  A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation.  In order to be appointed as a lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class in the action.  Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.  Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. 

Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country.  Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.  The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars).  The complaint in this action was not filed by Kessler Topaz Meltzer & Check.  For more information about Kessler Topaz Meltzer & Check, or for additional information about participating in this action, please visit www.ktmc.com.

CONTACT:
Kessler Topaz Meltzer & Check, LLP
Darren J. Check, Esq.
D. Seamus Kaskela, Esq.
Adrienne O. Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
(888) 299 - 7706
(610) 667 - 7706
[email protected]

SOURCE Kessler Topaz Meltzer & Check, LLP

Related Links

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