Suit Claims Tiltrotor ‘Misrepresentation’

 - October 9, 2007, 8:51 AM

A class-action lawsuit has been filed against Textron, accusing the Providence, R.I. corporation of misrepresenting to investors information about the V-22 Osprey program. The complaint alleges that Textron violated securities law by issuing a series of “material misrepresentations,” resulting in the inflation of Textron’s stock price. The firm said Textron failed to disclose that the V-22 Osprey “suffered from structural defects that required it to be substantially redesigned, which would delay full-scale production of the Osprey for years and cost hundreds of millions of dollars in excess of the costs allocated to the project for the purpose of calculating profit and loss.” The law firm representing the plaintiffs–investor group Milberg, Weiss, Bershad, Hynes & Learch LLP–said the suit was filed on behalf of purchasers of Textron stock between Oct. 19, 2000, and September 26 last year.