CaesarStone manufactures and sells engineered quartz slabs which are used for kitchen countertops, vanity tops, and backsplashes, as well as in other applications.
Shareholders allege that CaesarStone failed to disclose a series of negative news developments and in fact deliberately kept the news from them.
What investors are part of this class action? The class is currently defined as all purchasers of CaesarStone securities between March 25, 2013 and August 18, 2015, inclusive (the “Class Period”). CaesarStone is based in Israel, and its shares trade on NASDAQ under the ticker symbol “CSTE”.
The lawsuit alleges that during the Class Period, CaesarStone made false or misleading statements and failed to disclose important negative facts, including the following:
The above points appeared in an August 19, 2015 report by analyst firm Spruce Point Capital Management. When this information was published, CaesarStone by $3.68 or 7.6%. (ADRs function similarly to shares; they represent a simplified means for Americans to own shares in foreign companies.)
The class action claims that because of these points, CaesarStone’s statements about its business, operations, and prospects were false and misleading.
Procedural Status: The lawsuit was filed on August 25, 2015 and is captioned Tapia-Matos v. CaesarStone Sdot-Yam Ltd. et al. It was filed in the New York Southern District Court. Its civil docket number is 1:15cv06726. The lead plaintiff deadline is October 26, 2015. "
This case is in the notice period. When a shareholder brings suit under certain federal securities laws, it must generally give notice of the suit via a press release. This notice starts a 60-day period during which any other shareholder can investigate the claims and choose to bring suit as well. At the end of the 60-day period, the court appoints a shareholder or group of shareholders to be the plaintiffs for the suit. We will review the docket again in June and update this page as warranted.