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New Federal Securities Cases

Lexmark International, Inc.

A securities class action lawsuit has been filed in the United States District Court for the Southern District of New York against Lexmark International, Inc., ("Lexmark" or the "Company")(NYSE:LXK) on behalf of all investors who purchased or otherwise acquired Lexmark securities during the period from August 1, 2014 from July 20, 2015 (the "Class Period"). The lawsuit alleges that during the Class Period, Defendants violated provisions of the Exchange Act by issuing false and misleading statements regarding the Company's end-user demand, channel inventory, and growth prospects for its high-margin supplies business.

Lexmark is a manufacturer of printers and related supplies, primarily ink cartridges. Lexmark sells its products to wholesale distributors and large retail chains in more than 90 countries around the world.

During the Class Period, Lexmark repeatedly touted the profitability and growth of its high-margin supplies business. However, Defendants failed to disclose that: (1) end-user demand and growth for the Company's supplies business was deteriorating; (2) pricing increases were the primary driver of supplies revenue growth, not end-user demand; (3) customers in the supplies channel reacted by buying ahead of anticipated pricing increases; and as a result, (4) there was excessive inventory levels at its European wholesale distributors.

On July 21, 2015, when Lexmark reported poor results for its second quarter ending June 30, 2015 and lowered its 2015 sales guidance, the Company ultimately revealed its prior sales growth was not attributable to end-user demand but rather the result of its European customers buying ahead of customary price increases which produced excessive inventory. In reaction to this revelation, the Company's stock price dropped from $47.32 per share to close at $37.75 per share, damaging investors.

If you acquired Lexmark securities during the Class Period, you may, no later than September 19, 2017, request that the court appoint you lead plaintiff of the class. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions that could affect the overall recovery for class members, including decisions concerning settlement.

If you are a current or former Lexmark shareholder and wish to obtain additional information, please fill out the contact form at the link below.

Investigation Contact Form

Lexmark International, Inc. Contact Form


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