Hiding Sales Performance Problems of Arctic Cat
Textron paid $7.9 million to investors who accused the company of hiding sales performance problems with Arctic Cat, a snowmobile company Textron bought in 2017. The investors claimed Textron misled them about the integration, inventory, expected performance, and goodwill of Arctic Cat, leading to a stock drop of 11.25% and eliminating $1.8 billion from Textron’s market capitalization.
- Misconduct Type
- Enforcement Agency
- Contracting Party
- Court Type
- Date of Settlement Announcement