Investor suit alleged Spectrum makes DC woes

MADISON, Wis. ― Spectrum Brands Holdings dismissed as “meritless” a shareholder class action suit accusing the company of misleading the public to drive up its stock price. The filing claims former CEO Andreas Rouvé and CFO Douglas Martin concealed hiccups in the construction of two distribution centres, including one in Kansas for Spectrum’s hardware and home improvement segment. Executives, the plaintiffs say, insisted that the developments were “on track” as Spectrum’s profits suffered during the first half of 2017. In July of that year, the company owned up to “temporary, transitional challenges” but only in April 2018 did it acknowledge more serious challenges in getting the facilities underway, at which point the value of the shareholders’ investment declined even more sharply.