October 14, 2020 - The case was dismissed with prejudice.
September 17, 2020 - The court granted the defendants' motion to dismiss. The plaintiffs were given leave to amend the complaint. An amended complaint was not filed.
February 7, 2020 - A motion to dismiss for failure to state a claim was filed.
November 11, 2019 - An amended complaint was filed.
May 14, 2019 - An investor in shares of Revlon, Inc. (NYSE: REV) filed a lawsuit in the U.S. District Court for the Eastern District of New York over alleged violations of Federal Securities Laws by Revlon, Inc. in connection with certain allegedly false and misleading statements made between March 12, 2015 and March 28, 2019.
New York based Revlon, Inc., through its subsidiaries, develops, manufactures, markets, distributes, and sells beauty and personal care products worldwide. Revlon, Inc. reported that its annual Total Revenue rose from over $2.33 billion in 2016 to over $2.69 billion in 2017. On March 18, 2019, Revlon, Inc reported unaudited fourth-quarter and 2018 earnings, stating it spotted a material weakness in its internal controls over financial reporting for 2018, thus delaying the filing of the 10-K with the SEC. Shares of Revlon, Inc. (NYSE: REV) declined to $17.42 per share on March 20, 2019.
According to the complaint the plaintiff alleges on behalf of purchasers of Revlon, Inc. (NYSE: REV) common shares between March 12, 2015 and March 28, 2019, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between March 12, 2015 and March 28, 2019, the defendants made false and/or misleading statements and/or failed to disclose that Revlon failed to create measures to monitor its enterprise resource planning (“ERP”) system appropriately once implemented, that Revlon failed to design, implement and consistently operate effective process-level controls to ensure that it appropriately (a) recorded and accounted for inventory, accounts receivable, net sales and cost of goods sold, (b) reconciled balance sheet accounts, (c) reviewed and approved the complete population of manual journal entries, and (d) used complete and accurate information in performing manual control, which constituted a material weakness in its internal controls over financial reporting, that as a result of the poor preparation and planning of the implementation of the ERP system, Revlon was unable to fulfill product shipments of approximately $64 million of net sales and the Company incurred $53.6 million of incremental charges to remediate the decline in customer services levels, and that as a result, defendants’ statements about Revlon’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis at all relevant times.