Class action suit aimed at PPG
Following the finding of multiple accounting irregularities, a class action lawsuit has been filed U.S. District for the Central District of California against PPG.
According to the lawsuit, PPG made false or misleading statements and did not disclose that its financial statements for the year ended Dec. 31, 2017 – along with quarterly financial statements in 2017 - contained improper accounting.
The suit also alleges that PPG did not “maintain adequate internal controls” leading investors to be misled.
Last April, the Pittsburgh, Pa.-based paint and coatings manufacturer disclosed that an internal reporting system had found $1.4 million in expenses that should have been documented in its first quarter 2018.
Additional investigating lead to the firing of company controller Mark Kelly on May 10 along the reassignment of two employees in the accounting department.
The internal investigation also discovered more than $7.8 million in additional errors along with irregularities in PPG's 2017 year-end filing.
Plaintiffs in the suit are also alleging that they purchased shares of PPG at an inflated price because the accounting errors were not fully disclosed.
According to the lawsuit, PPG made false or misleading statements and did not disclose that its financial statements for the year ended Dec. 31, 2017 – along with quarterly financial statements in 2017 - contained improper accounting.
The suit also alleges that PPG did not “maintain adequate internal controls” leading investors to be misled.
Last April, the Pittsburgh, Pa.-based paint and coatings manufacturer disclosed that an internal reporting system had found $1.4 million in expenses that should have been documented in its first quarter 2018.
Additional investigating lead to the firing of company controller Mark Kelly on May 10 along the reassignment of two employees in the accounting department.
The internal investigation also discovered more than $7.8 million in additional errors along with irregularities in PPG's 2017 year-end filing.
Plaintiffs in the suit are also alleging that they purchased shares of PPG at an inflated price because the accounting errors were not fully disclosed.
This afternoon PPG said it had received a notice from the New York Stock Exchange on May 16, notifying the manufacturer that it was not in compliance the rules for NYSE listed companies. PPG has delayed the filing of its quarterly report on Form 10-Q for the quarter ended March 31, 2018.
PPG had been told, under the NYSE’s rules, it has six months from May 10, 2018 to file the Form 10-Q with the SEC. The Company can regain compliance with the NYSE listing standards by filing the Form 10-Q with the SEC before such date.