Vertiv Update: Officers and Directors Still Face Investigation for Potential Wrongdoing

Schubert Jonckheer & Kolbe LLP is investigating potential derivative claims on behalf of shareholders of Vertiv Holdings Co (NYSE: VRT) relating to the company’s huge earnings shortfall announced in February 2022. The Schubert Firm’s investigation concerns potential wrongdoing among certain of Vertiv’s officers and directors. 

On November 6, 2023, Magistrate Judge Ona T. Wang of the U.S. District Court for the Southern District of New York issued a Report and Recommendation to deny in part a motion to dismiss a class action complaint filed against Vertiv and certain of its current and former executive officers, relating to allegations that the defendants intentionally misstated the company’s projected 2021 profits. Following the defendants’ objections, on January 31, 2024, U.S. District Judge Gregory H. Woods adopted in part the Report and Recommendation and ordered that Magistrate Judge Wang issue a supplemental Report and Recommendation.

Vertiv produces and services digital infrastructure and data centers for large enterprise customers. According to the plaintiffs, between February 24, 2021 and February 22, 2022, Vertiv falsely touted its ability to meaningfully offset rising inflationary pressures, projecting 2021 adjusted operating profit as high as between $590 million and $610 million. When the company disclosed the truth on February 23, 2022 that it had missed 2021 projected annual adjusted operating income by $82 million, Vertiv’s stock price plummeted 37% in a single day.

The Schubert Firm is investigating potential wrongdoing by Vertiv’s directors and officers in connection with these allegations.

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