NEW YORK, Oct. 28, 2020 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, announces that a class action lawsuit has been filed in the United States District Court for the District of New Jersey on behalf of investors that purchased Bayerische Motoren Werke AG ("BMW") BMWYY BAMXF))) securities between November 3, 2015 and September 24, 2020 (the "Class Period"). Investors have until December 28, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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On December 23, 2019, the Wall Street Journal reported that the SEC was probing BMW's sales practices.
On this news, BMWYY ADRs fell $1.33 per ADR, or nearly 6.87%, to close at $18.02 per ADR on December 23, 2019. The same day, BAMXF ADRs fell $1.25, or 1.5%, to close at $80.60.
On September 24, 2020, the SEC announced a settlement agreement with BMW regarding the investigation. According to the SEC's order, from January 2015 to March 2017, BMW US "used its demonstrator and service loaner programs to boost reported retail sales volume and meet internal targets, resulting in demonstrator and loaner vehicles accounting for over one quarter of BMW [US]'s reported retail sales in this period." Additionally, the order found that BMW US, from 2015 to 2019, maintained a reserve of unreported retail vehicles sales – referred to internally as the "bank" – that it used to meet internal monthly sales targets regardless of when the actual sale occurred. The order also found that BMW improperly designated vehicles as demonstrators or loaners so they would be counted as sold when in actuality they were not. Without admitting to or denying the order's findings, BMW agreed to a settlement to pay $18 million and cease and desist from future violations.
On this news, BMWYY ADRs fell $0.51 per ADR, or approximately 2.2%, to close at $23.07 per ADR on September 25, 2020. The same day, BAMXF ADRs fell $2.54, or about 3.5%, to close at $68.91.
The complaint, filed on October 27, 2020, alleges that throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (1) BMW kept a "bank" of retail vehicle sales that it used to meet internal monthly sales targets regardless of when the sales actually occurred; (2) BMW artificially manipulated sales figures by having dealers register cars as sold when the cars were still in inventory; (3) as a result, BMW's key operating metrics were inaccurate and misleading; and (4) as a result, defendants' statements about BMW's business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis at all relevant times.
If you purchased BMW securities during the Class Period and suffered a loss, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker, Melissa Fortunato, or Marion Passmore by email at investigations@bespc.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com
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