​SUPREME INDUSTRIES, INC. 

​Securities Class Action

​​“Heavy insider selling in STS is a canary in the coalmine that should not be ignored. … Backlog of $58.1mil was down 22% year-over-year (yoy) and substantially weaker than we anticipated.” – Cliffside Research,
“The Party is Over For Supreme Industries, Inc.” Oct. 21, 2016.
Class Period
July 22, 2016 to October 21, 2016
Lead Plaintiff Motion Deadline
January 3, 2017
Stock Symbol
STS
Court
Central District of California


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About this action:​A class action has been commenced in the United States District Court for the Central District of California on behalf of purchasers of Supreme Industries, Inc. (“Supreme Industries”) (NYSE: STS) securities between July 22, 2016 and October 21, 2016  (the “Class Period”) .

​If you wish to serve as lead plaintiff, you must move the Court no later than January 3, 2017.  A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

​If you would like more information about getting involved in the Supreme Industries Class Action, please fill out the form to the left, or contact Sheila Feerick at 1-800-221-0015, or email

info@SafirsteinMetcalf.com.  Safirstein Metcalf LLP represents individual and institutional clients in a wide variety of litigation, with an emphasis on class, derivative, and other complex actions on behalf of investors and consumers. The firm handles matters on a contingency fee basis.
 
According to the lawsuit, throughout the Class Period Defendants made false and/or misleading statements and/or failed to disclose that: (1) the backlog figure from the third quarter of 2015 was a result of the timing of several large orders placed in that quarter; (2) the backlog figure for the third quarter of 2016 would not be close to the backlog figure of the third quarter of 2015; and (3) as a result, Defendants’ public statements about Supreme Industries’ business, operations and prospects were materially false and misleading at all relevant times. 

​On October 21, 2016, Supreme Industries issued a press release reporting on the earnings of the third quarter of 2016 and addressing a decline in backlog.  On this news, Supreme Industries share price fell $4.28 per share or over 23.8% from its previous closing price to close at $13.68 per share on October 21, 2016. 
Later that day, Cliffside Research published the report “The Party is Over For Supreme Industries, Inc.” which discussed the significance of the huge percentage drop in backlog and insiders’ knowledge of Supreme Industries’ struggling business by selling a substantial percentage of their Supreme Industries stock, stating in relevant part:

Heavy insider selling in STS is a canary in the coalmine that should not be ignored.
* * *
The magnitude of the Q3 backlog weakness caught us off guard though. Backlog of $58.1mil was down 22% year-over-year (yoy) and substantially weaker than we anticipated. 
 * * *
Based on the new backlog data and management’s comments we now believe Q4 earnings will be down yoy. We also believe 2017 earnings will likely be flattish vs. 2016 and possibly down. STS was expensive before. Now it looks like valuation is off the charts.

On this news, Supreme Industries share price fell $2.38 per share or over 17.3% from its previous closing price to close at $11.30 per share on October 24, 2016.